McCormick Beats on Revenue, Matches Expectations on EPS
McCormick (NYS: MKC) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q4), McCormick beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
McCormick booked revenue of $1.11 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.09 billion. Sales were 13% higher than the prior-year quarter's $979.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.98. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share on the same basis. GAAP EPS of $0.69 for Q4 were 1.3% lower than the prior-year quarter's $0.99 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 43.1%, 200 basis points worse than the prior-year quarter. Operating margin was 17.3%, 120 basis points worse than the prior-year quarter. Net margin was 11.9%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $868.1 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $3.96 billion. The average EPS estimate is $3.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 384 rating the stock outperform, and 15 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give McCormick a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McCormick is outperform, with an average price target of $53.58.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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