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Key Takeaways
- McCormick's fiscal first-quarter results missed Wall Street's expectations.
- The midpoint of McCormick's full-year forecast range was also slightly below analysts' estimates.
- The company experienced volume growth, which was offset to some extent by pricing declines.
McCormick & Company (MKC) reported fiscal first-quarter earnings that missed analysts’ expectations.
The spice and salt producer reported revenue of $1.6 billion. This was up less than 1% from the previous year and slightly below Visible Alpha’s consensus of analysts. Adjusted earnings of $162.3 million, or 60 cents per share, fell from $169.1 million, or 63 cents per share, a year earlier, also short of estimates.
Volumes increased in McCormick’s consumer segments and flavor solutions, but this was offset by a decline in pricing.
The company behind Frank’s RedHot, Cholula and other hot sauces expects net sales for the full year to be flat or up 2%, which is slightly lower than the analyst consensus at the midpoint of 1.5%. The company estimates adjusted earnings per common share of $3.03-$3.08, compared with the consensus estimate of $3.07.
Following the news, McCormick shares were not much changed in early trading on Tuesday. They've gained about 5% since the start of the year.
