Stock Monitor: Coffee Holding Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 02, 2018 / Active-Investors.com has just released a free earnings report on McCormick & Co., Inc. (NYSE: MKC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MKC. McCormick reported its fourth quarter and fiscal 2017 operating and financial results on January 25, 2018. The spices and seasonings Company outperformed top- and bottom-line expectations and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Coffee Holding Co., Inc. (NASDAQ: JVA), which also belongs to the Consumer Goods sector as the Company McCormick. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, McCormick most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For Q4 2017, McCormick reported a 21% increase in sales to $1.49 billion compared to sales of $1.23 billion in Q4 2016. Sales from RB Foods and Giotti, acquired in August 2017 and December 2016, respectively, added 15% to the Company's reported quarter sales growth. McCormick's reported numbers topped analysts' estimates of $1.48 billion.
For full year (FY) 2017, McCormick reported a 10% sales increase to $4.83 billion compared to $4.41 billion in FY16 with minimal impact from currency.
During Q4 2017, McCormick's gross profit margin increased 80 basis points versus the year ago corresponding period to 44.8%, driven by the Company's shift in the portfolio to more value-added products and CCI-led cost savings. McCormick's operating income for the reported quarter came in at $266.9 million versus $219.1 million in the year ago comparable period. This increase was due to higher sales and gross profit margin expansion.
For Q4 2017, McCormick reported net income of $175.7 million, or $1.32 per diluted share, compared to earnings of $157.4 million, or $1.24 per diluted share, in Q4 2016. Transaction and integration expenses and special charges lowered the Company's earnings per share by $0.22 and $0.03 in Q4 2017 and Q4 2016, respectively. Excluding the impact of transaction and integration expenses as well as special charges included in operating income, the Company's adjusted earnings per share increased 21% to $1.54 in the reported quarter compared to $1.27 in the year-ago same period. The increase in earnings per share was driven by higher operating income and a lower income tax rate. McCormick's earnings beat Wall Street's estimates of $1.52 per share.
For FY17, McCormick posted earnings of $477.4 million, or $3.72 per share, compared to $472.3 million, or $$3.69, in FY16. Transaction and integration expenses, including $15 million of other debt costs, as well as special charges lowered earnings per share by $0.54 and $0.09 in FY17 and FY16, respectively.
McCormick's Segment Results
During Q4 2017, the consumer segment's sales grew 20% on a y-o-y basis to $978.3 million. Consumer segment operating income, excluding transaction and integration expenses and special charges, rose 29% to $235 million for the reported quarter compared to $183 million in the year-ago same period.
For Q4 2017, the Industrial segment sales surged 25% to $512.6 million on a y-o-y basis. In constant currency, the industrial segment grew sales 23%, with significant increases in each of the Company's three regions. Industrial segment operating income, excluding transaction and integration expenses and special charges, rose 70% to $72 million for Q4 2017 compared to $43 million in Q4 2016 with minimal impact from currency.
McCormick's net cash provided by operating activities reached a record $815 million in FY17, a 24% increase from $658 million in FY16, driven by working capital improvements. The Company utilized a portion of this cash to pay down debt.
For full year 2018, McCormick is forecasting sales growth in the range of 12% to 14% on a y-o-y basis. The Company plans to achieve at least $100 million of cost savings and intends to use these savings to improve margins, fund an increase in brand marketing, and as a further offset to increased material costs.
McCormick is estimating FY18 operating income to grow 32% to 34% on a y-o-y basis. The Company projects FY18 earnings per share to be in the range of $6.89 to $7.14. Excluding an anticipated favorable per share impact in FY18 of $2.09 to $2.24, consisting of the estimated net favorable non-recurring impact of the recent US tax legislation, partially offset by the estimated effects of integration expenses related to RB Foods and of special charges, the Company projects FY18 adjusted earnings per share to be in the range of $4.80 to $4.90, reflecting an increase of 13% to 15% from adjusted earnings per share of $4.26 in FY17.
Stock Performance Snapshot
February 01, 2018 - At Thursday's closing bell, McCormick's stock fell 1.15%, ending the trading session at $107.52.
Volume traded for the day: 1.23 million shares, which was above the 3-month average volume of 1.03 million shares.
Stock performance in the last month – up 6.21%; previous three-month period – up 8.03%; past twelve-month period – up 13.72%; and year-to-date – up 5.50%
After yesterday's close, McCormick's market cap was at $13.77 billion.
Price to Earnings (P/E) ratio was at 29.78.
The stock has a dividend yield of 1.93%.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.1% at the end of the session.
Active-Investors (A-I) 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. A-I 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.
A-I 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® charterholder (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 A-I. A-I 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.
A-I, 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. A-I, 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, A-I, 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 A-I 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://active-investors.com/legal-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: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.