HUNT VALLEY, Md. - McCormick & Company (NYSE:MKC) reported third-quarter earnings that beat analyst expectations, sending shares up 4.5% in premarket trading Tuesday.
The spice and flavoring maker posted adjusted earnings per share of $0.83, significantly above the $0.67 consensus estimate. Revenue of $1.68 billion narrowly topped expectations of $1.67 billion.
McCormick's sales were flat compared to the same quarter last year, reflecting 1% volume growth offset by pricing. The company said it reached a "meaningful milestone" by delivering positive global volume growth, with solid gains in its Consumer segment despite a challenging environment in China.
"We are pleased with our year to date performance, which was in line with our expectations and reflects the success of our prioritized investments in the areas within our portfolio that we believe will drive the greatest value," said President and CEO Brendan M. Foley.
Operating income rose to $287 million from $245 million a year ago. Gross profit margin expanded 170 basis points to 38.7%, driven by favorable product mix and cost savings initiatives.
For the full fiscal year 2024, McCormick reaffirmed its sales and operating profit growth outlook. The company now expects adjusted earnings per share of $2.85 to $2.90, compared to the $2.87 analyst consensus.
"Our business fundamentals are strong, and we expect to continue to deliver profitable growth and drive shareholder value," Foley added.
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