- McCormick has increased its full year adjusted EPS forecast from $2.60-$2.65 to $2.62-$2.67.
- The company expects an operating income increase of 11% to 13%.
- It continues to project sales growth of 5% to 7%.
- The third quarter results show an adjusted operating profit increase of 5.2%.
- Adjusted EPS for the third quarter is 65c, down from 69c year on year.
- Net sales have increased by 5.6% year on year to reach $1.68 billion.
- Flavor Solutions’ net sales rose by 12% year on year to $747.6 million.
- Gross profit margin is 37%, up from 35.5% year on year.
- Cash and cash equivalents have decreased by 55% year on year to $154.7 million.
- Consumer net sales increased by 1% year on year to $937.1 million.
- Brendan M. Foley, President and CEO of McCormick, stated that the company’s performance reflects sustained demand and effective execution of growth strategies.
- The company achieved 6% sales growth in the third quarter due to effective price realization and improvement in business volume trends.
- Despite slower economic recovery in China, the company’s results met expectations.
- In the Consumer segment, sales growth in the Americas and EMEA regions was offset by an unfavorable impact in China.
McCormick & Company on Smartkarma
McCormick & Company is receiving high praise from the analysts at Baptista Research. According to the research report, “McCormick & Company: A Spicy Investment Opportunity? – Key Drivers”, the company has exceeded Wall Street’s expectations for both revenue and earnings. This reflects the strength of the company’s portfolio, as well as its successful implementation of strategy. Additionally, the research report notes that McCormick has extended into the quickly developing Mexican aisle with Cholula’s true Mexican flavor in new formats.
The sentiment of the research report is overwhelmingly positive, with analysts at Baptista Research recommending McCormick & Company as a great investment opportunity. With the company’s success in exceeding expectations and their effort to remain current with the quickly developing Mexican aisle, McCormick & Company is a great stock to consider.
A look at McCormick & Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
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, Inc. is a leading provider of flavor products and other specialty food products to the food industry. With a Smartkarma Smart Score of 2-3 for Value, Dividend, Growth, Resilience and Momentum, McCormick & Company is well-positioned to maintain its position as a top provider of flavor products and specialty food products in the future.
The company has a long-term outlook that is focused on providing quality products and services to its customers. With a score of 3 for Growth, McCormick & Company is well-equipped to grow and expand its product offerings in the coming years. The company also has a score of 2 for Resilience, which indicates that it is prepared to handle any potential changes in the market. Finally, McCormick & Company has a score of 3 for Momentum, indicating that it is well-positioned to capitalize on any new opportunities that may arise in the future.
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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