What to Look for When McCormick (MKC) Reports Q3 Results - TheStreet

NEW YORK (TheStreet) -- Shares of McCormick (MKC) - Get Report were lower in early-afternoon trading on Wednesday ahead of the company's 2016 third quarter earnings, due out before Friday's opening bell.

Analysts are expecting earnings and revenue to increase year-over-year.

Wall Street is forecasting that the Sparks, MD-based maker of spices and condiments will post earnings of 94 cents per share on revenue of $1.09 billion.

During the same period a year ago, McCormick said it had adjusted earnings of 85 cents per share on revenue of $1.06 billion.

Deutsche Bank has a "buy" rating and $112 price target on the stock ahead of the quarterly report.

"We believe McCormick is well-positioned to deliver against its targets including contribution from a recovery in U.S. Consumer, CCI cost savings, and strategic M&A actions," the firm wrote in a recent analyst note.

Deutsche Bank believes investors will focus on the large and profitable U.S. consumer business and management's efforts to stabilize and grow share.

"We look for an update on advertising efficacy and consumer response to the non-GMO and organic products rollout. While correlation to actual results is mixed, recent Nielsen data points to solid organic growth but share losses in the key spice & seasoning category," the firm added.

Deutsche Bank also anticipates commentary on cost savings vs. input cost inflation.

Separately, TheStreet Ratings Team has a "Buy" rating with score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.

The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MKC

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