J.M. Smucker (SJM) reported a bigger-than-expected decline in fiscal third-quarter sales on Thursday due largely to a supply chain disruption, though earnings unexpectedly rose year-over-year.

The Jif peanut butter maker's revenue fell to $2.19 billion for the three months ended Jan. 31 from $2.23 billion the year earlier and was below the $2.22 billion average analyst estimate on FactSet.

Comparable sales decreased 1%, with a five-percentage-point volume/mix decline driven by declines in coffee and dog snacks, as well as lower sales related to the divested pet food brands. Comparable sales, however, benefited from higher prices.

"Net sales were below our expectations, largely driven by $30 million of supply chain disruptions in our third quarter, primarily impacting US retail pet foods," Chief Financial Officer Tucker Marshall said in prepared remarks.

The consumer packaged foods company's adjusted earnings per share rose to $2.61 from $2.48 year over year and topped the $2.37 consensus.

Despite the now-resolved supply chain issue, the company delivered adjusted EPS above views "through disciplined cost management and execution," Chief Executive Mark Smucker said in prepared remarks. "Our strategy is working, and we are delivering positive results in a dynamic operating and consumer environment."

J.M. Smucker lowered its full-year revenue growth target to 7.25% from a previous 7.5% to 8.5% range. Comparable net sales are expected to increase by nearly 0.8%, which excludes the impact of various divestitures and the acquisition of Hostess Brands.

It now expects fiscal 2025 adjusted EPS to range between $9.85 and $10.15, up from a prior range of $9.70 to $10.10. The FactSet consensus is for non-GAAP EPS of $9.89 in the ongoing year.