Back to top

Image: Bigstock

McCormick (MKC) Posts Upbeat Earnings and Revenues in Q2

Read MoreHide Full Article

McCormick & Co. (MKC - Free Report) 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 strong portfolio and leading brands are consistently helping it to achieve strong growth. McCormick has been witnessing rising demand for spices, herbs and seasonings over the last few years. Further, its focus on building sales through brand marketing investments and acquisitions have been driving earnings.

McCormick has also been regularly launching new products in order to remain competitive. Its increasing focus on higher pricing and cost savings and enhancing productivity through its ongoing initiative, the Comprehensive Continuous Improvement (‘CCI’) program is also encouraging. However, sluggishness due to weak demand from quick service restaurants remains a concern. Due to this, investors are eagerly awaiting McCormick’s earnings report.

Investors should also note that the recent earnings estimate revisions for MKC have remained stable since past 30 days period. Interestingly, MKC has a positive history in earnings season, as MKC has delivered positive surprise in three out of the last four quarters, with in-line results in the remaining one, making for an average positive surprise of 3.12%.

Currently, MKC has a Zacks Rank #3 (Hold), but that could definitely change following McCormick’s earnings report which was just released. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MKC’s earnings of 82 cents per share outpaced our consensus of 77 cents. Investors should note that these figures take out stock option expenses.

Revenue: MKC posted revenues of $1.114 billion, which marginally beat our consensus estimate of $1.099 billion.

Key Stats to Note: McCormick’s sales grew 7% on a constant currency basis, driven by acquisition benefits and product innovation, expanded distribution, as well as pricing actions. The company reaffirmed its fiscal 2017 guidance on a constant currency basis.

Stock Price: Shares were up 1.87% in pre-market trading.

Check back later for our full write up on this MKC earnings report later!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


McCormick & Company, Incorporated (MKC) - free report >>

Published in