Valued at a market cap of $20.4 billion, McCormick & Company, Incorporated (MKC) is a global leader in manufacturing, marketing, and distributing spices, seasonings, condiments, and specialty foods. With a diverse portfolio of regional and ethnic brands, it serves a wide range of global markets, providing high-quality flavor products for both consumers and businesses. The Hunt Valley, Maryland-based company is expected to announce its fiscal Q4 earnings results before the market opens on Thursday, Jan. 23.
Ahead of this event, analysts expect the spices and seasonings company to report a profit of $0.78 per share, down 8.2% from $0.85 per share in the year-ago quarter. However, the company has surpassed Wall Street's earnings estimates in the last four quarters. In Q3, MKC exceeded the consensus EPS estimate by 22.1%.
For fiscal 2024, analysts expect MKC to report an EPS of $2.92, up 8.2% from $2.70 in fiscal 2023. Moreover, EPS is expected to grow 6.5% year-over-year to $3.11 in fiscal 2025.
Shares of MKC have risen nearly 10% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 26.3% surge. Nevertheless, the stock has slightly outpaced the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.4% return over the same period.
Shares of MKC rose 2.2% on Oct. 1, driven by its strong Q3 2024 performance, with adjusted EPS of $0.83, surpassing the consensus estimate and increasing significantly from the prior-year quarter. Sales totaled $1.7 billion, exceeding the consensus estimate, supported by a 1% volume growth despite challenges like pricing adjustments and the divestiture of the canning business. Gross profit margin expanded by 170 basis points, reflecting improved mix and savings from the Comprehensive Continuous Improvement (CCI) program. Additionally, the company reaffirmed its fiscal 2024 guidance, projecting adjusted EPS growth of $2.85 - $2.90 and operating income growth of 4% - 6%, strengthening investor confidence.
Analysts' consensus view on McCormick & Company’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 12 analysts covering the stock, six recommend "Strong Buy," five suggest "Hold," and one indicates “Strong Sell.” As of writing, MKC is trading below the average analyst price target of $86.46.
