Overview
Spices maker reported Q4 sales rose 3%, slightly beating analyst expectations
Adjusted EPS for Q4 was $0.86, missing analyst expectations
Company acquired controlling interest in McCormick de Mexico
Outlook
McCormick expects 2026 net sales growth of 13% to 17%
Company projects adjusted EPS for 2026 between $3.05 and $3.13
McCormick anticipates 2026 adjusted operating income growth of 16% to 20%
Result Drivers
CONSUMER SEGMENT - Organic sales increased 3% in Q4, driven by pricing actions and volume and product mix
FLAVOR SOLUTIONS - Organic sales increased 1% in Q4, with price increases offset by volume and product mix
COST SAVINGS - Decreased SG&A expenses and CCI program led to higher adjusted operating income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Beat* | $1.85 bln | $1.84 bln (10 Analysts) |
Q4 Adjusted EPS | Miss | $0.86 | $0.88 (10 Analysts) |
Q4 EPS | $0.84 | ||
Q4 Adjusted Net Income | Miss | $230.90 mln | $235.93 mln (7 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "hold."
Wall Street's median 12-month price target for McCormick & Company Inc is $77.00, about 15.7% above its January 21 closing price of $66.56
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nPnbSsmJ3a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)