McCormick & Company, Incorporated (MKC), headquartered in Hunt Valley, Maryland, manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food and beverage industry. Valued at $20.65 billion by market cap, the company serves retailers, food manufacturers, and foodservice businesses. Its most popular brands include McCormick, French’s, Frank’s RedHot, Stubb’s, OLD BAY, Lawry’s, Zatarain’s, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane, Gourmet Garden, FONA, and Giotti. The global leader in flavor is expected to announce its fiscal third-quarter earnings for 2024 on Tuesday, Oct. 1.
Ahead of the event, analysts expect MKC to report a profit of $0.67 per share on a diluted basis, up 3.1% from $0.65 per share in the year-ago quarter. The company has consistently beaten or matched Wall Street’s EPS estimates in its last four quarterly reports.
For fiscal 2024, analysts expect MKC to report EPS of $2.85, up 5.6% from $2.70 in fiscal 2023.
MKC stock has underperformed the S&P 500’s ($SPX) 15.6% gains on a YTD basis, with shares up 11.8% during this period. However, it outshined the S&P 500 Cons Staples Sector SPDR’s (XLP) 7.8% gains over the same time frame.
On Jun. 27, MKC shares rose 4% after the company reported its Q2 results. Its adjusted EPS was $0.69, beating the consensus estimates of $0.59. The company’s revenue stood at $1.64 billion, surpassing Wall Street estimates of $1.63 billion. MKC reaffirmed its 2024 outlook, with sales expected between (2%) to 0% compared to 2023, and operating income is expected to grow by 8% to 10% from $963 million in 2023. Meanwhile, it expects adjusted EPS to be between $2.80 and $2.85, compared to $2.70 in 2023, representing an increase of 4% to 6%. Since reporting its Q2 results, MKC shares have been on an uptrend.
Analysts’ consensus opinion on MKC stock is neutral, with a “Hold” rating overall. Out of 12 analysts covering the stock, four advise a “Strong Buy” rating, six recommend a “Hold” rating, and two give a “Strong Sell.” The average analyst price target for MKC is $75.83, indicating a marginal potential downside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
