McCormick Q1 Earnings Preview and Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MKC?
Source: seekingalpha
- Earnings Announcement: McCormick is set to release its Q1 earnings on March 31 before market open, with a consensus EPS estimate of $0.59, reflecting a 1.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.79 billion, representing an 11.5% year-over-year increase, indicating strong demand in the spice market that could enhance its market share.
- Historical Performance: Over the past two years, McCormick has beaten EPS and revenue estimates 75% of the time, suggesting a consistent performance that may bolster investor confidence ahead of the earnings report.
- Market Analysis: Recent analyses indicate that despite facing growth challenges in the
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Analyst Views on MKC
Wall Street analysts forecast MKC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 53.070
Low
75.00
Averages
83.67
High
89.00
Current: 53.070
Low
75.00
Averages
83.67
High
89.00
About MKC
McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry, including retailers, food manufacturers and foodservice businesses. It operates through two segments: consumer and flavor solutions. The consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the McCormick brand and a variety of brands around the world, including French's, Frank's RedHot, Lawry’s, Zatarain’s, Simply Asia, Thai Kitchen, Ducros, Vahine, Cholula, Schwartz, Club House, Kamis, DaQiao, La Drogheria, Stubb's, OLD BAY, Gourmet Garden, and others. In its flavor solutions segment, it provides a range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied with branded, packaged products both directly by the Company and indirectly through distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
McCormick Q1 Earnings Preview and Estimates
- Earnings Announcement: McCormick is set to release its Q1 earnings on March 31 before market open, with a consensus EPS estimate of $0.59, reflecting a 1.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.79 billion, representing an 11.5% year-over-year increase, indicating strong demand in the spice market that could enhance its market share.
- Historical Performance: Over the past two years, McCormick has beaten EPS and revenue estimates 75% of the time, suggesting a consistent performance that may bolster investor confidence ahead of the earnings report.
- Market Analysis: Recent analyses indicate that despite facing growth challenges in the
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- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
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Correction Status: The Nasdaq has officially entered correction territory, indicating a drop of 10% or more from its recent high.
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- Intensifying Market Competition: Rising prices have pushed consumers towards cheaper store brands or healthier alternatives, placing McCormick (MKC) under increasing competitive pressure, particularly against established players like General Mills (GIS) and Campbell's (CPB).
- Acquisition Strategy Exploration: McCormick is considering acquiring Unilever's (UL) food division, which includes brands like Hellmann's and Knorr, a move that would significantly expand its global market share, though it comes with risks as its shares have sharply declined amid growth and profitability concerns.
- High Integration Risks: Acquiring a large, globally complex business poses significant integration challenges for McCormick, likely requiring substantial investment and restructuring, as historical data shows that large mergers in the consumer goods sector often fail to deliver expected growth and can lead to asset write-downs.
- Pricing and Management Critical: If the acquisition is priced carefully and managed well, McCormick could transform into a global leader in flavor brands; however, mismanagement could result in another costly misstep in an industry known for disappointing mega mergers, impacting its long-term growth prospects.
See More
McCormick Q1 Earnings Preview and Estimates
- Earnings Announcement: McCormick is set to release its Q1 earnings on March 31 before market open, with a consensus EPS estimate of $0.59, reflecting a 1.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.79 billion, representing an 11.5% year-over-year increase, indicating strong demand in the spice market that could enhance its market share.
- Historical Performance: Over the past two years, McCormick has beaten EPS and revenue estimates 75% of the time, suggesting a consistent performance that may bolster investor confidence ahead of the earnings report.
- Market Analysis: Recent analyses indicate that despite facing growth challenges in the
See More
Surging Oil Prices Impact Market Sentiment
- Oil Price Volatility: Crude oil prices surged 55% in March following Trump's threat to 'take the oil in Iran,' marking the largest monthly gain ever, which has heightened concerns about the potential impact on the U.S. economy and market sentiment.
- Government Shutdown Impact: Trump signed an executive order to ensure TSA employees are paid after Congress failed to reach a deal, which may lead to longer security wait times and higher airfare for travelers, further affecting consumer confidence.
- Tech Industry Legal Risks: Meta's two courtroom defeats reveal the legal liabilities tech companies face when researching product impacts, which could have significant implications for the AI industry, prompting firms to reassess the risks versus rewards of such research investments.
- Pharmaceutical Collaboration: Eli Lilly's $2.75 billion deal with Insilico Medicine aims to bring AI-developed drugs to the global market, which not only boosted Lilly's stock price but also highlights the rapidly growing potential of AI applications in the pharmaceutical sector.
See More
Stock Futures Rise Amid Oil Price Surge and Market Recovery
- Oil Price Surge: Crude oil prices skyrocketed by 55% in March following Trump's threat to seize Iranian oil, marking the largest monthly gain ever, which pressures the U.S. economy and forces companies to adjust pricing strategies to cope with rising costs.
- Market Recovery Signal: Despite the S&P 500 and Nasdaq Composite experiencing their worst week of 2026, stock futures rose after Trump indicated “great progress” in negotiations with Iran, reflecting investor optimism about market recovery.
- TSA Employee Pay Restoration: Trump signed an executive order ensuring Transportation Security Administration employees will receive pay after Congress failed to reach a deal to end the government shutdown, alleviating traveler frustrations caused by long security wait times.
- AI Drug Development Partnership: Eli Lilly struck a $2.75 billion deal with Insilico Medicine to bring AI-developed drugs to market, enhancing Lilly's market confidence and potentially accelerating the application of AI in the pharmaceutical industry.
See More
Analyzing Investment Prospects for Campbell's Company Stock
- Stock Price and Valuation: As of March 24, Campbell's shares were trading at $20.91, with a trailing P/E of 11.46 and a forward P/E of 9.01, indicating a discounted valuation despite a 5.8% dividend yield and a payout ratio below 80%.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
See More
Key Focus Areas This Week: Jobs, Home Prices, Nike, McCormick, Conagra, and More
Market Performance: Equities have declined for the fifth consecutive week, with the Nasdaq Composite index dropping 3.2% and the S&P 500 falling 2.1%.
Correction Status: The Nasdaq has officially entered correction territory, indicating a drop of 10% or more from its recent high.
Percentage Decline: The Nasdaq is currently down 12.6% from its record close achieved in late October.
Overall Trend: The ongoing slump reflects a broader trend of declining equity markets over the past several weeks.
See More
McCormick's Challenges in Acquiring Unilever's Food Division
- Intensifying Market Competition: Rising prices have pushed consumers towards cheaper store brands or healthier alternatives, placing McCormick (MKC) under increasing competitive pressure, particularly against established players like General Mills (GIS) and Campbell's (CPB).
- Acquisition Strategy Exploration: McCormick is considering acquiring Unilever's (UL) food division, which includes brands like Hellmann's and Knorr, a move that would significantly expand its global market share, though it comes with risks as its shares have sharply declined amid growth and profitability concerns.
- High Integration Risks: Acquiring a large, globally complex business poses significant integration challenges for McCormick, likely requiring substantial investment and restructuring, as historical data shows that large mergers in the consumer goods sector often fail to deliver expected growth and can lead to asset write-downs.
- Pricing and Management Critical: If the acquisition is priced carefully and managed well, McCormick could transform into a global leader in flavor brands; however, mismanagement could result in another costly misstep in an industry known for disappointing mega mergers, impacting its long-term growth prospects.
See More
