McCormick & Company, Incorporated MKC is slated to report first-quarter fiscal 2020 results on Mar 31. This spices and seasonings company delivered a positive earnings surprise of 6%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for first-quarter earnings has declined a penny to $1.04 per share over the past seven days. This suggests a decline of 7.1% from the year-ago period’s reported figure. The consensus mark for revenues stands at $1,229 million, indicating a decline of 0.2% from the figure reported in the year-ago period.
McCormick & Company, Incorporated Price and EPS Surprise
McCormick & Company, Incorporated price-eps-surprise | McCormick & Company, Incorporated Quote
Key Factors to Note
McCormick has been benefiting from constant innovation and product launches to address the evolving consumer demand for new flavors, spices and herbs. Further, the company’s efforts to enhance marketing strategies have been yielding results. Apart from this, it has also been focused on its Comprehensive Continuous Improvement (CCI) program to cut costs and enhance productivity.
However, we cannot ignore the risks related to volatile currency movements. Evidently, adverse currency movements have been a drag on McCormick’s top and bottom lines for a while now. Additionally, the recent outbreak of the novel coronavirus has rattled most sectors, derailing economic activities worldwide. Companies are bearing the brunt of supply-chain bottlenecks due to travel restrictions imposed to contain further spread of the deadly virus. Incidentally, management in its last earnings call stated that McCormick’s three plants in China are likely to be non-operational until further notice by the government.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for McCormick this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McCormick carries a Zacks Rank #3 and an Earnings ESP of +0.77%.
Other Stocks With Favorable Combinations
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Church & Dwight CHD currently has an Earnings ESP of +8.40% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kimberly-Clark KMB has an Earnings ESP of +1.76% and a Zacks Rank #3.
Helen of Troy HELE currently has an Earnings ESP of +0.78% and a Zacks Rank of 3.
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