McCormick & Co. (MKC) Tops Q3 EPS by 9c; Boosts FY16 EPS Outlook

McCormick & Co. (NYSE: MKC) reported Q3 EPS of $1.03, $0.09 better than the analyst estimate of $0.94. Revenue for the quarter came in at $1.09 billion versus the consensus estimate of $1.09 billion.

President & CEO's Remarks

Lawrence E. Kurzius, President and CEO, stated, "Our strong third quarter financial results demonstrate the effective execution of our strategy. We are driving both sales growth and significant productivity improvements, and expect 2016 to be a record year for McCormick. The efforts and engagement of employees throughout the company are driving this performance.

"Consumer demand for healthy and high quality flavors continues to grow in markets around the world. In both our consumer and industrial segments, we are meeting this demand with a broad portfolio of on-trend products in our base business, innovative new products and through acquisitions. All of these factors contributed to our third quarter sales increase of 3%, which was 6% in constant currency, and we achieved particularly strong growth in our consumer business in the U.S. and in China. We are balancing these strategies to grow sales with our actions to improve productivity and lower costs. Led by our Comprehensive Continuous Improvement (CCI) program, we expect to achieve cost savings of $100 million to $110 million in 2016. We are investing a portion of these savings in brand marketing and other growth initiatives and also driving greater profitability for our business, as demonstrated by the strong increase in third quarter operating income."

GUIDANCE:

McCormick & Co. sees FY2016 EPS of $3.75-$3.79, versus prior guidance of $3.68-$3.75 and the consensus of $3.75.

For earnings history and earnings-related data on McCormick & Co. (MKC) click here.

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