The 10-second takeaway
For the quarter ended Feb. 28 (Q1), McCormick beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded.
Margins dropped across the board.
McCormick logged revenue of $934.4 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $922.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share. GAAP EPS of $0.57 for Q1 were 3.6% 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.
For the quarter, gross margin was 38.7%, 50 basis points worse than the prior-year quarter. Operating margin was 12.0%, 40 basis points worse than the prior-year quarter. Net margin was 8.1%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is $3.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 410 members out of 428 rating the stock outperform, and 18 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 171 give McCormick a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McCormick is hold, with an average price target of $64.27.
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