Shares of McCormick (MKC) - Get Report jumped on Tuesday after the spice and condiment maker posted better-than-expected fiscal-first-quarter earnings, as the pandemic continues to see more consumers cooking at home.
The company also raised its full-year guidance for fiscal 2021.
Shares of the Hunt Valley, Md., company at last check rose 4.5% to $94.15.
For the quarter ended Feb. 28 McCormick posted earnings of 60 cents a share, up 11% from 54 cents a share in the year-earlier period.
Revenue rose 22% to $1.48 billion from $1.21 billion.
A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 57 cents a share on revenue of $1.38 billion.
"We are capitalizing on accelerating consumer trends, particularly the sustained shift to cooking more at home, increased digital engagement, clean and flavorful eating, and trusted brands, which we are confident will continue to persist even beyond the pandemic," Chairman, President and Chief Executive Lawrence E. Kurzius said in a statement.
The maker of Frank’s RedHot, French’s mustard and various spices saw its consumer-segment sales increase 35% to $946.8 million from $699.5 million.
The consumer-segment performance "continued to reflect the sustained consumer preference for cooking more at home, with double-digit organic-sales growth in all regions," added Kurzius.
Sales in the Americas benefited from incremental sales of the hot-sauce brand Cholula, the company said.
The company’s flavor-solutions segment, which sells ingredients to commercial operators, saw revenue increase 4% to $534.7 million from $512.5 million.
For all of fiscal 2021 the company projected earnings would range $2.77 to $2.82 a share.
McCormick expects the year's sales to grow by 8% to 10%, above its previous projection of 7% to 9%.
FactSet's survey of analysts is looking for fiscal 2021 profit of $2.91 a share on revenue of $6.06 billion.