McCormick Shares Drop After Gloomy Outlook

In This Article:

  • McCormick & Co Inc (NYSE: MKC) expects third-quarter FY22 sales to increase about 3% year-on-year and 6% in constant currency.

  • The company said Q3 growth is expected to be driven by a rise in both the Consumer and Flavor Solutions segments.

  • It sees Q3 operating income of $223 million versus $265 million last year.

  • McCormick expects Q3 adjusted EPS of $0.65 against $0.80 the previous year and the consensus of $0.83.

  • "Overall, the normalization of our supply chain costs is taking longer than expected, pressuring gross margin," said CEO Lawrence E. Kurzius.

  • The company expects FY22 sales growth of 3% - 5% in constant currency (the previous outlook was a growth of 5% - 7% in constant currency).

  • It sees FY22 adjusted operating income decline of 11% - 9% in constant currency (the previous outlook was an increase of 2% - 4% in constant currency).

  • McCormick projects FY22 adjusted EPS of $2.63 - $2.68 from the previous guidance of $3.03 - $3.08 versus the consensus of $3.04.

  • The company will report its Q3 earnings on October 6, 2022.

  • Price Action: MKC shares are trading lower by 5.88% at $80.00 in premarket on the last check Thursday.

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