MKC Earnings Prediction
The chart below shows how MKC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MKC sees a -0.55% change in stock price 10 days leading up to the earnings, and a -0.09% change 10 days following the report. On the earnings day itself, the stock moves by +1.91%. This data can give you a slight idea of what to expect for the next quarter's release.
MKC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.68B
-0.29%
2.23%
Gross Margin
38.69%
4.65%
2.60%
Operating Margin
17.17%
15.23%
19.57%
Net Margin
13.28%
31.49%
18.47%
EPS
0.83
31.75%
22.06%
No Data Available
MKC Earnings Analysis
McCormick & Company Inc Corporation (MKC.N) Earnings Conference Call
Positive
Americas Consumer Volume Growth: In Q3, McCormick achieved a 1% volume growth in the Americas consumer segment, marking the third consecutive quarter of sequential improvement, driven by innovation and expanded distribution.
Operating Income Improvement: Adjusted operating income increased by 15% year-over-year, with a 31% increase in the Flavor Solutions segment, reflecting strong profitability improvements and effective cost management.
Gross Profit Margin Expansion: Gross profit margin expanded by 170 basis points compared to the previous year, primarily due to favorable product mix and the impact of the comprehensive continuous improvement program.
E-commerce Sales Surge: E-commerce sales drove double-digit consumption growth in the Americas and EMEA, significantly contributing to overall unit consumption growth for the quarter.
Earnings Per Share Increase: Q3 adjusted earnings per share rose to $0.83, up from $0.65 in the prior year, primarily due to increased operating profit and discrete tax benefits.
Negative
Stagnant Revenue Performance: Sales were flat in constant currency, reflecting flat pricing and only 1% volume growth, indicating a stagnation in revenue generation.
EMEA Sales Decline: In the EMEA region, constant currency sales decreased by 9%, driven by lower volume and product mix, highlighting significant challenges in that market.
APAC Consumer Sales Outlook: Consumer sales in the APAC region were flat, primarily due to the macro environment in China, which is expected to remain challenging and negatively impact future sales.
Decline in Cash Flow: Cash flow from operations for the first nine months of 2024 was $463 million, a decrease from $660 million in 2023, indicating a significant decline in cash generation capabilities.
China Consumer Sales Outlook: The company expects China consumer sales to be down slightly compared to 2023 for the full year, reflecting ongoing weakness in that critical market.
MKC FAQs
How does MKC typically perform around its earnings report dates?
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MKC Earning Call Sentiment
Earnings call transcript: McCormick & Co Q3 2024 beats EPS forecast, stock dips
MKC.N
1.85%Positive
The earnings call summary shows strong financial performance with increased operating income, expanded gross margins, and improved EPS. Despite flat sales, the company demonstrated growth in volume and effective cost management. The Q&A session revealed positive sentiment from analysts, with management addressing concerns about volume recovery and pricing strategies. Although there was some uncertainty about 2025 guidance, the overall outlook remains optimistic. The absence of a share repurchase program is a minor negative, but the positive financial metrics and optimistic guidance suggest a likely stock price increase.
