McCormick & Company Prepares for Q2 Earnings Report Amidst Mixed Outlook

Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) specializes in manufacturing, marketing, and distributing spices, seasoning mixes, and condiments for the food industry. With a market capitalization of $20.4 billion, McCormick operates through two segments: Consumer and Flavor Solutions.

Upcoming Earnings Expectations

The packaged foods giant is set to announce its Q2 results on Thursday, June 26. Analysts anticipate that MKC will report an adjusted EPS of $0.68, reflecting a decline of 1.5% from $0.69 achieved in the prior year’s quarter. Historically, while the company has missed the Street’s earnings expectations once in the last four quarters, it has exceeded projections on three occasions.

Full-Year Performance Projections

For the complete fiscal year 2025, MKC is expected to report an adjusted EPS of $3.05, a 3.4% increase from $2.95 reported in fiscal 2024. Looking ahead to fiscal 2026, earnings are projected to rise 8.5% year-over-year, reaching $3.31 per share.

Stock Performance Overview

MKC Stock has seen a marginal increase of 79 basis points over the past 52 weeks. This performance notably lags behind the S&P 500 Index ($SPX), which has gained 10.6%, and the Consumer Staples Select Sector SPDR Fund (XLP), which has returned 8.4% during the same period.

Q1 Results Recap

Following the release of its Q1 results on March 25, MKC stock prices experienced a slight decline. The company reported a 2% growth in volumes, but currency fluctuations offset these gains, resulting in net sales rising only 17 basis points year-over-year to $1.6 billion, which fell short of consensus estimates by 38 basis points. Additionally, adjusted EPS for the quarter dropped 4.8% year-over-year to $0.60, missing Street expectations by 6.3%.

On a positive note, for the entire fiscal year 2025, McCormick anticipates low-single-digit growth in volumes and a gradual recovery in demand from China.

Analyst Sentiment

The consensus perspective on MKC Stock remains cautiously optimistic, holding a “Moderate Buy” rating. Among the 13 analysts covering the Stock, recommendations vary: six “Strong Buys,” one “Moderate Buy,” five “Holds,” and one “Strong Sell.” The mean price target of $85.57 indicates an upside potential of 11.6% from current levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please review the Barchart Disclosure Policy here.

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