Yahoo Finance Earnings To Watch: McCormick (MKC) Reports Q2 Results Tomorrow
Food flavoring company McCormick (NYSE:MKC) will be reporting earnings tomorrow morning. Here's what investors should know.
McCormick beat analysts' revenue expectations by 3.3% last quarter, reporting revenues of $1.60 billion, up 2.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' earnings estimates.
Is McCormick a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting McCormick's revenue to decline 1.7% year on year to $1.63 billion, a reversal from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McCormick has missed Wall Street's revenue estimates five times over the last two years.
Looking at McCormick's peers in the consumer staples segment, only General Mills has reported results so far. It missed analysts' revenue estimates by 3%, posting year-on-year sales declines of 6.3%.
Read our full analysis of General Mills's earnings results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share prices down 3% on average over the last month. McCormick is down 5.1% during the same time and is heading into earnings with an average analyst price target of $74.6 (compared to the current share price of $67.68).
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