Spice maker McCormick's Q3 sales, adj profit beat expectations
Spice maker McCormick's Q3 sales, adj profit beat expectations
Overview
U.S. flavor products maker's Q3 sales rose 17% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company reaffirmed fiscal 2026 outlook and highlighted margin expansion
Outlook
McCormick reaffirms fiscal 2026 net sales growth outlook of 13% to 17%
Company expects 2026 adjusted EPS of $3.05 to $3.13
Company anticipates adjusted gross margin to expand by 100 to 120 basis points in 2026
Result Drivers
ACQUISITION IMPACT - McCormick said sales growth was largely driven by the consolidation of McCormick de Mexico, which contributed 14% to the sales increase
PRICE INCREASES - Co said organic sales growth was driven by higher prices, with volume and mix flat or declining in most segments
COST SAVINGS - Margin expansion was attributed to cost savings from the Comprehensive Continuous Improvement (CCI) program, offsetting higher input and freight costs
Company press release: ID:nPn4gXX6pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $2.02 bln | $1.98 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $0.86 | $0.76 (11 Analysts) |
Q3 EPS |
| $0.36 |
|
Q3 Adjusted Net Income | Beat | $231.70 mln | $203.66 mln (8 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for McCormick & Company, Incorporated is $57.50, about 23.9% above its September 30 closing price of $46.40
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)