Categories Earnings, Retail

McCormick beats Q3 earnings estimates; revenues miss expectations

McCormick & Company Incorporated (NYSE: MKC) surpassed analysts’ expectations for earnings in the third quarter of 2019 but revenues came in shy of estimates. The stock climbed 1.9% in premarket hours on Tuesday.

Net sales inched up 1% to $1.32 billion from the prior-year period, but fell below forecasts of $1.34 billion. In constant currency, sales grew 2%.

Net income was $191.9 million, or $1.43 per share, compared to $173.5 million, or $1.30 per share, last year. Adjusted EPS rose 14% to $1.46, beating estimates of $1.29. Adjusted EPS growth was driven by higher adjusted operating income, lower interest expense and a lower adjusted tax rate.

(Image for representation only/Courtesy: Andra Ion/Unsplash)

During the quarter, sales in the Consumer segment grew 3% year-over-year to $794.2 million. In constant currency, sales grew 4%. Sales in the Americas and Asia/Pacific rose both on a reported and constant currency basis, helped by higher volume and product mix. Sales in EMEA decreased due to extreme weather, lower sales of private label products and unfavorable pricing.

Also read: Constellation Brands Q2 2020 Earnings Preview

In the Flavor Solutions segment, sales fell 2% year-over-year to $535 million. Sales in the Americas and Asia-Pacific fell both on a reported and constant currency basis due to warehouse transition activities and the timing of customers’ promotional activities. In EMEA, sales fell 2% on a reported basis but increased 4% in constant currency, helped by higher volume and product mix.  

For full year 2019, the company expects sales growth of 1-2% on a reported basis and 3-4% in constant currency. McCormick increased both its reported and adjusted EPS guidance for the year. GAAP EPS is now expected to be $5.20-5.25 versus the previous range of $5.09-5.19. Adjusted EPS is now expected to be $5.30-5.35 versus the prior outlook of $5.20-5.30.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Earnings calendar for the week of May 17

Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow

Alibaba (BABA): The good and the bad from the Q4 earnings report

Shares of Alibaba Group (NYSE: BABA) have dropped 10% since the beginning of the year. The company reported mixed results for the fourth quarter of 2021 a day ago, with

Walt Disney (DIS) is focused on reopening, to put up a better show this year

With some of its parks and resorts either closed or operating at reduced capacity even more than a year after the virus outbreak, The Walt Disney Company (NYSE: DIS) is

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top