McCormick stock rises 5% on beating estimates as acquisition boosts sales
Investment.com -- On Thursday, McCormick & Company (NYSE: MKC) reported third-quarter results that exceeded analyst expectations while reaffirming its full-year outlook. Shares of the company rose 4.79% in pre-market tradig following the announcement.
The flavor company posted adjusted earnings per share of $0.86, beating the consensus estimate of $0.76 by $0.10.
Revenue reached $2.02 billion, surpassing the $1.98 billion analyst estimate and marking a 17.4% increase from $1.72 billion in the year-ago period. The strong revenue growth included a 14.6% contribution from the McCormick de Mexico acquisition and 1.9% organic sales growth.
"Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment," said Chairman, President, and CEO Brendan M. Foley. "We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins."
The Consumer segment saw net sales increase 25% to $1.22 billion, while the Flavor Solutions segment grew 8% to $809 million.
Gross profit margin expanded 190 basis points to 39.3%, driven by the Mexico acquisition, higher sales, and cost savings from the company’s Comprehensive Continuous Improvement program, partially offset by higher commodity and freight costs.
For fiscal 2026, McCormick reaffirmed its adjusted earnings per share guidance of $3.05 to $3.13, representing growth of 2% to 5%. The midpoint of $3.09 aligns with the company’s expectations for continued margin expansion and integration benefits from the Mexico acquisition.