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McCormick (MKC) Posts Upbeat Earnings and Revenues in Q3

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McCormick & Company, Inc. (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 program is also encouraging. However, sluggishness due to weak demand from quick service restaurants remains a concern.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 and 2018 increased by 0.2% and 0.6% in the last thirty days. However, in the trailing four quarters, excluding quarter under review, the company exceeded the Zacks Consensus Estimate by an average of nearly 4.4%.

Zacks Rank: 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 adjusted earnings of $1.12 per share outpaced our consensus of $1.05 per share. Investors should note that these figures take out stock option expenses.

Revenue: MKC posted revenues of $1.185 billion, which marginally beat our consensus estimate of $1.146 billion.

Key Stats to Note: McCormick’s sales grew 8.4% on a constant currency basis, driven by acquisition benefits and product innovation, expanded distribution, as well as pricing actions. The company updated its fiscal 2017 guidance to reflect the acquisition of RB Foods and lower impact from unfavorable currency headwinds.

Stock Price: Shares were in-active in pre-market trading.

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

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