McCormick (NYSE: MKC) reported earnings on June 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q2), McCormick beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins dropped across the board.
Revenue details
McCormick chalked up revenue of $984.0 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $968.7 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $883.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.60. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.60 for Q2 were 9.1% higher than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 39.5%, 20 basis points worse than the prior-year quarter. Operating margin was 12.3%, 10 basis points worse than the prior-year quarter. Net margin was 8.2%, 10 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $997.1 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $4.04 billion. The average EPS estimate is $3.05.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 372 members out of 386 rating the stock outperform, and 14 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give McCormick a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McCormick is outperform, with an average price target of $58.42.
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