McCormick & Company, Inc. (NYSE: MKC)
McCormick stock rose 1.77% in premarket trading session on Thursday after the company reported its second quarter results for the period ended May 31, 2018.
Wall Street analysts expected the Maryland-based company to announce adjusted earnings per share of $0.93 on revenue of $1.32 billion, but the company went above their estimates.
MKC Earnings & Outlook
McCormick posted a net income of $123.3 million, or $0.93 per share. In the same quarter last year, net income of $100.0 million, or $0.79 per share.
Adjusted for one-items, earnings per share came in at $1.02. Revenue was $1.33 billion, up 19% from $1.11 billion in the second quarter of 2017.
For the full year, the company sees adjusted earnings per share in the range of $4.85 to $4.93, and revenue growth of 13% to 15%.
Analysts expect adjusted earnings per share of $4.93 and a revenue growth of 13%.
McCormick CEO Comments
The company’s President and Chief Executive Lawrence Kurzius, said, “McCormick’s strong second quarter and year to date results reflect the successful execution of our strategies. We delivered double-digit sales, adjusted operating income and adjusted earnings per share growth as well as significant operating margin expansion. Both our consumer and flavor solutions segments contributed to our constant currency sales growth of 16%. Growth in both segments was led by incremental sales from the Frank’s and French’s portfolio.”
Kurzius added, “Consumer segment sales growth was also driven by both Americas and Asia/Pacific base business and new products, with particular strength in China. Our additional flavor solutions segment growth was driven by increased base business and new product sales in flavors as well as broad-based branded foodservice growth in the Americas region. Across both of our segments, the solid growth from our core business and the performance of Frank’s and French’s were in line with our plans and we are pleased with our momentum entering the second half of the year.”
McCormick & Company, Inc. Company Profile
McCormick & Company, Inc. engages in the manufacture, marketing, and distribution of flavorful products, such as condiments, seasoning mixes, and spices to the food industry. It operates under Industrial and Consumer segments.
The Industrial segment provides compound flavors, herbs and spices, seasoning blends, coating systems, and condiments to foodservice customers and multinational food manufacturers.
The Consumer division offers desserts, spices, seasonings as well as herbs. Products offered by this segment are available under Club House, McCormick, OLD BAY, French, Lawry’s, Frank’s RedHot, and Gourmet Garden brand names in North and South America.
In Europe, Africa, and the Middle East, the products are available under Vahiné, Drogheria & Alimentari, Ducros, Kamis, and Schwartz brand names.
The segment also sells its products in China under DaQiao and McCormick brands.
The company serves retailers, including warehouse clubs, grocery, drug and discount stores, mass merchandise, and online retailers indirectly and directly through wholesalers or distributors.
McCormick & Company, Inc. was founded in 1889 by Willoughby M. McCormick. Its headquarters are located in Sparks, Maryland. –Reuters
