Why Hot Sauce Maker McCormick Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
McCormick & Company, Inc. (NYSE:MKC) reported Q4 revenues of $1.753 billion, missing estimates but saw a 3% increase from the previous year. Adjusted EPS was $0.85, beating consensus estimates of $0.79. Gross profit margin expanded by 320 basis points, driven by favorable product mix, cost savings, and pricing actions. Operating income rose to $297 million. The company expects FY24 adjusted EPS of $2.80-$2.85 and sales change to range from (2)% to 0%. Shares rose by 3.63% to $68.17.
January 25, 2024 | 3:44 pm
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McCormick reported Q4 revenue below estimates but beat EPS expectations. Gross margin improved, and operating income increased. FY24 EPS guidance is slightly below consensus. Shares are up.
Despite the revenue miss, the positive earnings beat and improved profit margins are likely to be viewed favorably by investors in the short term. The slight miss on FY24 EPS guidance is not significantly below consensus, which may not heavily weigh on investor sentiment. The stock price increase reflects positive market reaction to the earnings report.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100