McCormick raises annual profit forecast after ‘strong’ results

McCormick & Company (NYSE:) reported solid results for its second quarter, paving the way for the company to raise its adjusted operating income and adjusted earnings per share outlook.

McCormick EPS of $0.60 on revenue of $1.66 billion, which compares to the analyst consensus for earnings of $0.57 on revenue of $1.67B. Overall, net sales rose 8% year-over-year.

On a full-year basis, the company sees EPS of $2.60-2.65, in line with the consensus of $2.63. Full-year operating income is seen rising 11-13% YoY. while sales are still expected to grow 5-7%.

“We delivered strong second quarter results reflecting sustained demand across our business and the effective execution of our growth strategies,” said Lawrence E. Kurzius, Chairman and CEO.

Goldman Sachs analysts expect MKC shares to “modestly outperform peers” today.

They highlighted EPS upside in the quarter, “raised FY23 EPS guidance potentially balanced by YTD outperformance versus Staples peers, weaker Consumer segment sales/profit versus expectations, and consensus already at the high-end of management’s revised outlook for the year.”