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McCormick (MKC) Gears Up for Q4 Earnings: Things to Consider
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McCormick & Company, Incorporated (MKC - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings on Jan 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,764 million, suggesting a rise of almost 2% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2022 sales is pegged at $6,419 million, indicating an increase of 1.6% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for the fiscal fourth quarter bottom line has remained unchanged in the past 30 days at 86 cents per share. The projection indicates growth of 2.4% from the year-ago quarter’s reported figure. The company’s consensus mark for the fiscal 2022 bottom line is pegged at $2.66 per share, indicating a decline of 12.8% from the year-ago period’s reported figure.
The global leader in flavor has a trailing four-quarter negative earnings surprise of 2.1%, on average. MKC delivered an earnings surprise of 6.2% in the last reported quarter.
McCormick & Company, Incorporated Price and EPS Surprise
McCormick is benefiting from strategic acquisitions, which have been growing its presence. Strength in its broad global portfolio and the effective execution of strategies has been driving growth. Its brand marketing investments, innovation and category management initiatives continue to fuel growth.
McCormick is on track to capitalize on a sustained shift to cooking more at home, higher digital engagement, clean and flavorful eating and trusted brands. Strategic pricing actions have been aiding growth. Also, the company’s effective cost-cutting efforts bode well amid a rising inflationary environment.
Management expects fiscal 2022 net sales increase of 2% from fiscal 2021 levels and a 3-5% rise at constant currency (cc). This includes an adverse impact from the sale of its Kitchen Basics business. In its last earnings call, the company highlighted that it expects to deliver fiscal 2022 operating margin expansion on a focused cost structure improvement plan.
McCormick has been struggling with cost inflation for a while now, which continues to hamper its margin performance. The company has been witnessing supply chain-related issues. Apart from this, the company is exposed to unfavorable currency fluctuations.
For fiscal 2022, management expects the adjusted gross profit margin contraction of 350 to 300 basis points year over year, mainly due to the Flavor Solutions segment. Adjusted operating income is likely to have declined 13-11% (down 11-9% at cc) during the year. Management envisions adjusted earnings per share (EPS) of $2.63-$2.68 in fiscal 2022. The company posted adjusted earnings of $3.05 per share in fiscal 2021. The guidance reflects an adverse impact of 2 cents from the sale of the Kitchen Basics business.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for McCormick this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McCormick carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.86%.
Some Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.1 billion, indicating a rise of almost 6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top- and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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McCormick (MKC) Gears Up for Q4 Earnings: Things to Consider
McCormick & Company, Incorporated (MKC - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings on Jan 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,764 million, suggesting a rise of almost 2% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2022 sales is pegged at $6,419 million, indicating an increase of 1.6% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for the fiscal fourth quarter bottom line has remained unchanged in the past 30 days at 86 cents per share. The projection indicates growth of 2.4% from the year-ago quarter’s reported figure. The company’s consensus mark for the fiscal 2022 bottom line is pegged at $2.66 per share, indicating a decline of 12.8% from the year-ago period’s reported figure.
The global leader in flavor has a trailing four-quarter negative earnings surprise of 2.1%, on average. MKC delivered an earnings surprise of 6.2% in the last reported quarter.
McCormick & Company, Incorporated Price and EPS Surprise
McCormick & Company, Incorporated price-eps-surprise | McCormick & Company, Incorporated Quote
Things To Consider
McCormick is benefiting from strategic acquisitions, which have been growing its presence. Strength in its broad global portfolio and the effective execution of strategies has been driving growth. Its brand marketing investments, innovation and category management initiatives continue to fuel growth.
McCormick is on track to capitalize on a sustained shift to cooking more at home, higher digital engagement, clean and flavorful eating and trusted brands. Strategic pricing actions have been aiding growth. Also, the company’s effective cost-cutting efforts bode well amid a rising inflationary environment.
Management expects fiscal 2022 net sales increase of 2% from fiscal 2021 levels and a 3-5% rise at constant currency (cc). This includes an adverse impact from the sale of its Kitchen Basics business. In its last earnings call, the company highlighted that it expects to deliver fiscal 2022 operating margin expansion on a focused cost structure improvement plan.
McCormick has been struggling with cost inflation for a while now, which continues to hamper its margin performance. The company has been witnessing supply chain-related issues. Apart from this, the company is exposed to unfavorable currency fluctuations.
For fiscal 2022, management expects the adjusted gross profit margin contraction of 350 to 300 basis points year over year, mainly due to the Flavor Solutions segment. Adjusted operating income is likely to have declined 13-11% (down 11-9% at cc) during the year. Management envisions adjusted earnings per share (EPS) of $2.63-$2.68 in fiscal 2022. The company posted adjusted earnings of $3.05 per share in fiscal 2021. The guidance reflects an adverse impact of 2 cents from the sale of the Kitchen Basics business.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for McCormick this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McCormick carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.86%.
Some Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +2.64% and a Zacks Rank of 2. MDLZ is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.1 billion, indicating a rise of almost 6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top- and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.