McCormick & Co. (MKC) is a global leader in spices, seasonings, specialty foods and flavors. The company has a strong brand portfolio and owns more than 250 brands that are sold in the U.S. and in international markets.
McCormick’s robust top-line growth, regular product innovation, cost savings, and aggressive buybacks have been driving earnings for the past many quarters. Moreover, McCormick has witnessed a 20% rise in spice, herb and seasoning purchases in the last five years, owing to the rising demand for flavors. However, weak demand from quick service restaurants, mainly in the Americas and the Asia-Pacific region in the industrial segment remain a concern over the near term. Due to this, investors are eagerly awaiting McCormick’s earnings report.
Investors should also note the recent earnings estimate revisions for MKC, as the consensus estimate has been moving slightly lower. In contrast, MKC has a positive history in earnings season, as MKC has delivered positive surprise in all the last four quarters, making for an average surprise of 7.29%.
Currently, MKC has a Zacks Rank #3 (Hold), but that could definitely change following McCormick’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MKC’s earnings of 70 cents beat our consensus of 64 cents. Investors should note that these figures take out stock option expenses.
Revenue: MKC posted revenues of $1.01 billion. This slightly beats our consensus estimate of $986 million.
Key Stats to Note: McCormick’s sales grew 6% on a constant currency basis, driven by higher volume and product mix in both the segments.
Check back later for our full write up on this MKC earnings report later!
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