What You Need To Know Ahead of McCormick & Company's Earnings Release
Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. With a market cap of $20.4 billion, McCormick operates through Consumer and Flavor Solutions segments.
The packaged foods giant is expected to announce its Q2 results on Thursday, Jun. 26. Ahead of the event, analysts expect MKC to report an adjusted EPS of $0.68, down 1.5% from $0.69 reported in the year-ago quarter. While the company has missed Street’s earnings expectations once over the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, MKC is expected to report an adjusted EPS of $3.05, up 3.4% from $2.95 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 8.5% year-over-year to $3.31 per share.
MKC stock has experienced a marginal 79 bps uptick over the past 52 weeks, notably lagging behind the S&P 500 Index’s ($SPX) 10.6% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.4% returns during the same time frame.
McCormick’s stock prices observed a marginal dip after the release of its Q1 results on Mar. 25. The company experienced a 2% growth in volumes, but it was mostly offset by currency headwinds, leading to its net sales growing by a modest 17 bps year-over-year to $1.6 billion, which missed the consensus estimates by 38 bps. Meanwhile, its adjusted EPS for the quarter decreased 4.8% year-over-year to $0.60, falling short of Street expectations by 6.3%.
On a positive note, for the full fiscal 2025, the company expects to observe a low-single-digit growth in volumes and a gradual improvement in demand from China.
The consensus view on MKC stock remains cautiously optimistic, with a “Moderate Buy” rating overall. Of the 13 analysts covering the stock, opinions include six “Strong Buys,” one “Moderate Buy,” five “Holds,” and one “Strong Sell.” Its mean price target of $85.57 suggests an 11.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.