Analyst have forecast for a year-over-year drop in earnings per share, but a year-over-year increase in revenue for the latest quarter.
McCormick is expected to report earnings of 87 cents per share on $1.06 billion in revenue for the quarter.
Last year, the company posted earnings of 95 cents per share on revenue of $1.04 billion for the quarter ended August 31, 2014.
Sparks, Md.-based McCormick is a manufacturer and distributor of spices, seasoning mixes, condiments and other food products.
The company is moving towards non-GMO and organics with plans make 80% of its gourmet herbs and spices products, and 70% of herbs, spices and extracts under the McCormick brand non-GMO and organic by 2016.
McCormick stock is falling 0.15% to $82.05 in after-hours trading on Wednesday.
Separately, TheStreet Ratings team rates MCCORMICK & CO INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate MCCORMICK & CO INC (MKC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Food Products industry and the overall market, MCCORMICK & CO INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- MCCORMICK & CO INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MCCORMICK & CO INC increased its bottom line by earning $3.34 versus $2.92 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $3.34).
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 42.14% is the gross profit margin for MCCORMICK & CO INC which we consider to be strong. Regardless of MKC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MKC's net profit margin of 8.23% compares favorably to the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.0%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: MKC