McCormick Beats on Both Top and Bottom Lines
McCormick (NYS: MKC) reported earnings March 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q1), McCormick beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank.
Margins shrank across the board.
McCormick logged revenue of $906.7 million. The 10 analysts polled by S&P Capital IQ expected sales of $868.9 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $782.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.53 per share. GAAP EPS of $0.55 for Q1 were 3.5% lower than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.2%, 270 basis points worse than the prior-year quarter. Operating margin was 12.4%, 170 basis points worse than the prior-year quarter. Net margin was 8.2%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $967.2 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $3.96 billion. The average EPS estimate is $3.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 370 members out of 384 rating the stock outperform, and 14 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 130 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 $54.00.
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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. Motley Fool newsletter services have recommended buying shares of McCormick. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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