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MKC

McCormick (MKC) Lags Q3 Earnings; Beats on Revenue

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. Back to back acquisitions have also contributed to revenues in the recent past. 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, sluggishness in the industrial segment due to weak demand from quick service restaurants, mainly in the Americas and the Asia-Pacific region remain 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 are almost flat. Interestingly, 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 9.68%.

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 85 cents missed our consensus of 87 cents. Investors should note that these figures take out stock option expenses.

Revenue: MKC posted revenues of $1.060 billion. This beat our consensus estimate of $1.055 billion.

Key Stats to Note: McCormick's sales grew 7% on a constant currency basis, driven by growth in both the segments. The company has raised its sales guidance to the upper end of its 4% to 6% projected constant currency growth range for fiscal year 2015 on the back of strong sales momentum. However, McCormick expects sluggish earnings of third quarter fiscal 2015 and currency headwinds to negatively impact fiscal 2015 earnings guidance.

Stock Price: In-active in pre-market trading .

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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