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.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add McCormick to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends McCormick. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.