J.M. Smucker raised its outlook for the year after logging higher-than-expected adjusted earnings and sales in the latest quarter.

The owner of Jif peanut butter and Folgers coffee said it now expects net sales to decline 1% to 2% in its fiscal 2027, compared with a prior forecast for net sales to decline 3% to 4%. Analysts polled by FactSet are looking for sales of $8.78 billion in the coming year, marking a 3% decrease from last year.

The company previously said it expects sales to decline in the coming year as it leans away from price increases, looking instead to drive volume growth in key areas and improve profitability.

J.M. Smucker also raised its full-year adjusted earnings outlook to $10.50 to $11 a share, up from a prior forecast of $9.75 to $10.25 a share. Wall Street modeled adjusted earnings of $10.07 a share.

Shares jumped 6%, to $133, in premarket trading.

Chief Executive Mark Smucker said the new outlooks are based on the company's strong first-quarter performance and improving expectations for the remainder of the year.

"We are focused on advancing our strategic priorities of driving organic volume growth across our key platforms, improving profitability and accelerating earnings growth, and maintaining a disciplined approach to capital deployment," he said.

For its three months ended July 31, J.M. Smucker posted net income of $324.3 million, or $3.03 a share, compared with a loss of $43.9 million, or 41 cents a share, a year earlier.

Stripping out one-time items, earnings were $3.24 a share. Analysts surveyed by FactSet expected adjusted earnings of $2.22 a share.

Net sales climbed 5% to $2.22 billion, ahead of Wall Street models for $2.13 billion.

The company attributed the increase in part to higher prices, particularly for coffee.