LONDON, UK / ACCESSWIRE / July 12, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on McCormick & Co., Inc. (NYSE: MKC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MKC, following the Company's announcement of its financial results for the second quarter fiscal 2017 on June 29, 2017. The spices and seasonings Company outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MKC. With the links below you can directly download the report of your stock of interest-free of charge at:
For the three months ended May 31, 2017, McCormick's net sales increased 4.8% to $1.11 billion compared to $1.06 billion in Q2 FY16. Base business growth, new products, and acquisitions, were the three drivers of sales growth. During the reported quarter, consumer segment's sales were up 4% and industrial segment grew at 12% in constant currency from Q2 FY16. The Company's revenue numbers surpassed analysts' expectations of $1.10 billion.
McCormick's operating income increased 6% to $132.6 million in Q2 FY17 from $125.0 million in Q2 FY16. The adjusted operating income increased 9% in constant currency attributable to higher sales and savings from Comprehensive Continuous Improvement program (CCI). The increase is in-line with the Company's expectations of 9%-11% for fiscal 2017.
For the reported quarter, the Company's adjusted operating margin expanded 20 basis points from the same quarter last year. Gross margin for Q2 FY17 decreased 80 basis points to 39.9% of sales from 40.7% in Q2 FY16. The decrease is reflected by the unfavorable impact of currency exchange rates and the timing of some pricing actions.
McCormick & Co.'s SG&A for the reported quarter was 27.6% of sales, down 100 basis points from Q2 FY16 due to leverage from sales growth and CCI-led savings. The income tax rate for Q2 FY17 decreased 10 basis points to 23.0% from 23.1% in Q2 FY16.
McCormick's adjusted net income increased 7.2% to $103.4 million in Q2 FY17 from $96.5 million in Q2 FY16. The adjusted earnings per share increased 9.3% to $0.82 for Q2 FY17 compared to $0.75 for Q2 FY16. The adjusted earnings per share for Q2 FY17 include the unfavorable impact of foreign currency exchange rate. The increase was due to growth in adjusted operating income and higher income from unconsolidated operations. The Company's earnings numbers surpassed Wall Street's expectations of $0.77 per share.
As on May 31, 2017, McCormick & Co.'s cash and cash equivalents was $130.0 million compared to $ 131.5 million in Q2 FY16. For the reported quarter cash flow from operations decreased 16.9% to $177.0 million from $213.0 million in the same quarter last year. During the quarter, the Company distributed $253 million of cash through dividends and share repurchases and used $66.0 million for capital expenditures.
On June 27, 2017, McCormick's Board of Directors declared a quarterly dividend of $0.47 per share on its common stocks payable July 24, 2017, to shareholders of record on July 10, 2017. McCormick's current annualized dividend rate of $1.88 per share represents an increase of 9% over the annual dividend of $1.72 per share paid in FY16. This is the 93rd year of consecutive dividend payments by the Company.
For FY17, McCormick & Co. is forecasting sales to increase in the range of 5%-7% in constant currency. The Company expects the net sales growth rate of 1%, down from the original estimate of 2% due to the impact of foreign currency exchange rates on sales and the impact of special charges related to the organization and streamlining actions underway.
For the fiscal year 2017, the Company expects capital expenditure in the range of $170.0 million-$190.0 million and adjusted earnings per share are expected to be in the range of $4.05-$4.13.
On Tuesday, July 11, 2017, the stock closed the trading session at $96.25, rising 1.35% from its previous closing price of $94.97. A total volume of 1.26 million shares has exchanged hands, which was higher than the 3-month average volume of 575.75 thousand shares. McCormick's stock price advanced 6.78% in the previous six months. Furthermore, since the start of the year, shares of the Company have gained 3.13%. The stock is trading at a PE ratio of 25.58 and has a dividend yield of 1.95%. At Tuesday's closing price, the stock's net capitalization stands at $12.16 billion.
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email firstname.lastname@example.org. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily