McCormick & Co. (MKC) - Get Report posted stronger-than-expected third quarter earnings Tuesday, while unveiling a two-for-one stock split, as stay-at-home trends in consumer buying continue to support packaged food groups.
Spices and condiments maker McCormick said adjusted earnings for the three months ending in August, the group's fiscal third quarter, were pegged at $1.53 per share, a 4.8% increase from the same period last year and a penny ahead of the Street consensus forecast. Group revenues, McCormick said, rose 8% to $1.39 billion, essentially matching analysts' estimates,
Looking into the final months of its financial year, McCormick said it sees adjusted earnings in the region of $5.64 to $5.72 per share, and overall revenue growth 'at the upper end" of a 4% to 5% range. McCormick's board also approved plans for a two-for-one stock split, which will take effect on December 1.
The last few months have been an extraordinary period and the COVID-19 situation continues to evolve daily. I am incredibly proud of the way McCormick has performed in an unprecedented operating environment.
"The last few months have been an extraordinary period and the COVID-19 situation continues to evolve daily," said CEO Lawrence Kurzius. "I am incredibly proud of the way McCormick has performed in an unprecedented operating environment."
"Our results for the third quarter continued to be significantly impacted by the sustained consumer preference for cooking more at home," he added. "Our outstanding consumer segment growth was driven by the substantial increase in demand reflecting the change in consumer behavior and fueled by our brand marketing, strong consumer digital connections and new products. In our flavor solutions segment, lower demand from our restaurant and other foodservice customers improved sequentially from the second quarter and were almost fully offset by increased sales to packaged food companies."
McCormick shares were marked 4% lower in early trading immediately following the earnings release to change hands at $187.10 each, a move that would trim the stock's year-to-date gain to around 10.2%.