NEW YORK (TheStreet) -- McCormick & Company (MKC) slid on Wednesday after issuing weaker-than-estimated revenue and earnings guidance for the year ahead. The stock had unloaded 6.6% to $65.03 by midday.
The food spices maker recorded net income of $1.20 a share for its November-ended quarter, exceeding Thomson Reuters consensus by a penny. Revenue of $1.17 billion came in 2.2% higher than a year earlier but fell short of estimates by nearly $49 million.
For fiscal 2013, the company generated $4.12 billion in revenue, missing expectations by $52 million. Net profit of $3.13 was in line with analyst estimates.
"Our outlook for increased sales and operating income in 2014 is based on our growth initiatives underway around the world. For our consumer business, we are driving sales with a robust pipeline of innovation and a significant increase in our brand marketing. We expect to increase industrial business sales and profit through new product development and support for international expansion," said CEO Alan D. Wilson in a statement.
For the full year, the Sparks, MD.-based business expects earnings between $3.22 and $3.29 a share with revenue growth of 3% to 5%. Analysts had forecast earnings of $3.44 a share with 6% sales growth. Management anticipates first-quarter earnings of around 57 cents a share, flat on the year-ago quarter, compared to the 64 cents estimated by analysts.
TheStreet Ratings team rates MCCORMICK & CO INC as a Buy with a ratings score of A-. The 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 revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."