McCormick Hits New 52-Week Highs Following Q1 Earnings Beat

by Jayson Derrick

March 29, 2016 12:08 PM | 2 min read | Make a Comment

Shares of

McCormick & Company, Incorporated

MKC

hit a new 52-week high of $99.90 on Tuesday after the company reported its

first quarter results. McCormick said that it earned $0.74 per share in the first quarter on revenue of $1.03 billion. Wall Street analysts were expecting the company to earn $0.69 per share on revenue of $1.03 billion. McCormick noted that it sales rose 2 percent in the quarter, or 7 percent year-over-year on a constant currency basis. Consumer segment sales rose 6 percent year-over-year on a constant currency basis due to higher volume and product mix, improving pricing actions, and the impact of acquisitions. Industrial sales also rose 7 percent on a constant currency basis over the same time period. Operating income improved to $129 million in the quarter from $94 million a year ago as higher sales and cost savings more than offset higher material input costs and increased employee benefits expenses. Looking forward to the full year fiscal 2016, McCormick expects to grow sales by 4 percent to 6 percent on a constant currency basis, or by 1 percent to 3 percent due to unfavorable currency rates. The company also expects to realize at least $95 million in cost savings and an increase its marketing expenses by approximately $20 million. Lawrence E. Kurzius, President and CEO, stated, "McCormick's first quarter results were a great start to fiscal year 2016. Consumer demand for healthy flavor and high quality products is increasing globally and we are meeting this demand with a growing portfolio of on-trend products. Each of our two segments achieved strong underlying sales increases driven by our growth strategy. We are growing base business sales with brand marketing and are launching differentiated new products such as herb grinders and slow cooker sauces for our consumer segment and snack seasonings for industrial customers. We had an incremental sales benefit from three acquisitions completed in 2015, and continued to expand the availability and footprint of our business through retail channels and with new industrial customers.

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Posted In: Earnings News Food Companies food stocks Lawrence Kurzius mccormick

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