- McCormick revised its fiscal year adjusted EPS forecast, setting it between $3.00 and $3.05, down from the previous $3.03 to $3.08 range.
- Third quarter adjusted EPS was reported at 85 cents, an increase from 83 cents year-over-year and exceeding the estimate of 82 cents.
- Net sales for the third quarter reached $1.72 billion, a 2.7% rise compared to last year, surpassing the $1.71 billion estimate.
- The Flavor Solutions division saw net sales of $752 million, up 1.3% year-over-year, beating the estimate of $747.5 million.
- Gross profit margin for the quarter was 37.4%, down from 38.7% last year, and lower than the estimated 38.8%.
- Cash and cash equivalents stood at $94.9 million, representing a 53% decrease year-over-year, and significantly below the $239.6 million estimate.
- McCormick reaffirmed its sales growth outlook for fiscal year 2025 but adjusted its operating income and earnings per share forecasts due to rising commodity costs and tariffs.
- Despite inflation and increased tariffs, McCormick continues to invest in growth plans, supported by cost savings initiatives that bolster resilience and differentiation.
- The company experienced its fifth consecutive quarter of volume-led growth, credited to ongoing investments in branding, distribution expansion, and innovation.
- The global trade environment’s challenges have pressured the gross margin, but McCormick achieved operating profit growth through successful cost savings execution.
- Market sentiment includes 6 buy ratings, 8 hold ratings, and 1 sell rating for McCormick’s stock.
McCormick & Company on Smartkarma
McCormick & Company‘s performance is under the spotlight on Smartkarma, where top independent analysts like Baptista Research provide insights. In a bullish analysis titled “McCormick Battles Tariff Turmoil With A New Diversification Strategy But Will It Work?“, Baptista Research delves into the company’s recent first-quarter results for 2025. The report reveals a mixed bag of outcomes, with organic sales showing modest growth amid profitability challenges. McCormick’s total organic sales saw a 2% increase, fueled mainly by volume and product mix expansion.
A look at McCormick & Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
McCormick & Company, a leading flavor products manufacturer, is positioned for a stable long-term outlook based on its Smartkarma Smart Scores. With consistent scores of 3 across various factors including Value, Dividend, Growth, Resilience, and Momentum, the company showcases a balanced performance in key areas. This indicates a moderate yet reliable standing in terms of financial health and market position.
As a manufacturer, marketer, and distributor of a wide range of flavor products and specialty food items, McCormick & Company serves the food industry with a diversified portfolio. The company’s Smart Scores suggest a steady trajectory for the future, reflecting a balanced approach towards value, growth, and resilience. With moderate momentum, McCormick & Company appears well-positioned to navigate market challenges and capitalize on growth opportunities in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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