McCormick exceeds Wall Street’s third quarter profit and revenue estimates.
The food company has reinstated its forecast for the full year.
The NYSE-listed company announced a 2-1 stock split on Tuesday.
McCormick & Co. Inc. (NYSE: MKC) released its third quarter earnings report on Tuesday, which was better than the experts’ forecast. The company announced a stock split (2 to 1) and reinstated its full year guidance due to robust demand in the midst of the coronavirus pandemic that continues to keep people eating at home.
McCormick is said to have risen by about 1.5% in pre-trade trading on Tuesday. The company’s shares are now trading at £156, down from a much lower price of £88 per share in March. Below is what you need to know about stock market volatility.
McCormick’s financial results for the 3rd quarter compared to analysts’ estimates
McCormick said its net profit for the third quarter was £160.11 million, or £1.19 per share. This compares to a much lower net profit of £149.08 million or £1.11 per share in the same quarter last year. McCormick donated £388,000 last week to social justice organisations to support black communities.
On an adjusted basis, the US food company earned £1.19 per share in the third quarter, slightly exceeding the FactSet consensus of £1.18 per share. In the previous quarter (Q2), McCormick had reported a 7.6% increase in sales according to the report published at the end of June.
In terms of revenue, the Baltimore-headquartered company recorded £1.11 billion in the final quarter, up from £1.03 billion a year earlier. According to FactSet, experts for McCormick had expected revenues of 1.08 billion pounds sterling in the third quarter.
Notes from CEO Lawrence Kurzius on Tuesday
CEO Lawrence Kurzius commented on Tuesday on the Company’s financial results and noted
“Our third quarter results continued to be significantly impacted by the continued consumer preference to cook more at home. Our updated outlook for 2020 reflects the strength of these annual results to date and our confidence in the sustainability of higher home consumption trends”.
For the full year, McCormick now forecasts annualized sales growth of 4% to 5%. He expects his earnings for fiscal year 2020 to fall within a range of £4.38 per share to £4.44 per share. The FactSet consensus for McCormick’s annual earnings per share is currently much higher at £6.02.
At the time of writing this article, the owner of prominent brands such as French’s and Kamis has a market capitalisation of £20 billion and a price/earnings ratio of 35.14.