J.P. Morgan Reiterates Neutral Rating on McCormick & Company Following Pro Forma 2Q13 Results

In a report published Thursday, J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on

. In the report, J.P. Morgan noted, “McCormick reported pro forma 2Q13 (May) of $0.61, in line with Street estimates. The top line grew 1.9% Y/Y, slightly lower than the 2.3% consensus. The gross margin was a bit lighter than the Street expected (39.3% versus 39.8%) and the SG&A margin was a bit lighter too (27.4% versus 27.7%). We are excluding $4MM in acquisition costs from our model. The Consumer segment's top line grew 3.9%, in line with our expectation. The margin excluding the acquisition costs was 15.5%, 60 bps above our forecast. The Industrial segment's revenues were down 1% Y/Y, lower than the +1% we had forecast. Sales continue to be impaired by QSR demand both in the US and China. The margin came in at 6.9%, 30 bps under our model.” McCormick & Company closed on Wednesday at $72.03.