HUNT VALLEY, Md. - McCormick & Company, Incorporated (NYSE:MKC) has surpassed market expectations with its first-quarter earnings per share (EPS) and revenue, reporting a notable increase from the same quarter last year and exceeding analyst estimates.
The global flavor powerhouse posted an adjusted EPS of $0.63, which is $0.06 higher than the analyst consensus of $0.57. Revenue reached $1.6 billion, outpacing the consensus estimate of $1.55 billion and marking a 3% rise year-over-year (YoY).
Investors reacted positively to the news, with McCormick's stock price climbing 3.65% following the earnings release.
McCormick's President and CEO, Brendan M. Foley, expressed satisfaction with the company's strong start to the year, highlighting the strategic investments that have driven impactful results. He noted the sequential improvement in volumes in both the Consumer and Flavor Solutions segments and reaffirmed confidence in the company's ability to meet its 2024 outlook and long-term financial objectives.
The company's sales growth was partially attributed to a 3% increase from pricing actions, although this was partially offset by a 1% volume and mix decline due to strategic decisions to discontinue low-margin business and divest a small canning business. Despite these factors, the underlying volume and product mix remained flat compared to the first quarter of the previous year.
Looking ahead, McCormick expects its 2024 earnings per share to range between $2.76 to $2.81, with special charges expected to lower earnings per share by $0.04. Adjusted EPS for 2024 is projected to be between $2.80 to $2.85, representing a 4% to 6% increase, or 5% to 7% in constant currency, from the $2.70 adjusted EPS reported in 2023. This guidance is well-aligned with the company's commitment to driving profitable results and differentiated volume-led growth.
Foley also took the opportunity to acknowledge the contributions of McCormick employees and the company's focus on cultivating a culture that fosters leadership and capabilities for future success.
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