McCormick (MKC) To Report Earnings Tomorrow: Here Is What To Expect

Food flavoring company McCormick (NYSE:MKC) will be reporting earnings this Thursday morning. Here’s what to expect.

McCormick beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.72 billion, up 2.7% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ revenue estimates but a miss of analysts’ gross margin estimates.

Is McCormick a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting McCormick’s revenue to grow 2% year on year to $1.83 billion, in line with the 2.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McCormick has missed Wall Street’s revenue estimates three times over the last two years.

Looking at McCormick’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills’s revenues decreased 7.2% year on year, beating analysts’ expectations by 1.9%, and Simply Good Foods reported flat revenue, topping estimates by 1.2%. General Mills traded up 3.6% following the results while Simply Good Foods was also up 10.5%.

Read our full analysis of General Mills’s results here and Simply Good Foods’s results here.

There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.6% on average over the last month. McCormick is down 2.1% during the same time and is heading into earnings with an average analyst price target of $77 (compared to the current share price of $67.34).

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