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McCormick (MKC) Queued for Q1 Earnings: Things to Consider

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McCormick & Company, Incorporated MKC is likely to register top-and bottom-line decline when it reports first-quarter fiscal 2022 numbers on Mar 29. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,442 million, suggesting a dip of 2.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to 59 cents per share in the last seven days, suggesting a decline of 18.1% from the figure reported in the prior-year quarter. In the last reported quarter, the company delivered an earnings surprise of 5%. This manufacturer, marketer and distributor of spices, seasoning mixes, condiments and other flavorful products has a trailing four-quarter earnings surprise of 12.2%, on average.

McCormick & Company, Incorporated Price, Consensus and EPS Surprise

McCormick & Company, Incorporated Price, Consensus and EPS Surprise
McCormick & Company, Incorporated Price, Consensus and EPS Surprise

McCormick & Company, Incorporated price-consensus-eps-surprise-chart | McCormick & Company, Incorporated Quote

Things To Consider

McCormick is battling escalated inflation along with broad-based supply chain-related hurdles for a while. A rise in costs has been putting pressure on the company’s gross profit margin. In its last earnings call, management highlighted that cost inflation would exert significant pressure in the first half of 2022. This is likely to be reflected inthe company’s performance in the first quarter of fiscal 2022.

In addition, management highlighted that it is lapping solid business performance from the year-ago quarter, where the Consumer segment delivered exceptional performance. We believe that such a segment mix challenge might be a concern in the to-be-reported quarter.

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 has an Earnings ESP of +8.11%.

Other Stocks With Favorable Combinations

Here are some other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Hershey HSY currently has an Earnings ESP of +1.64% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings is pegged at $2.10 per share, suggesting a 9.4% rise from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.47 billion, calling for a rise of 7.7% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.

Inter Parfums, Inc. IPAR currently has an Earnings ESP of +5.20% and a Zacks Rank of 2. The company is likely to display a year-over-year decline in the bottom line, when it reports first-quarter 2022 earnings. The Zacks Consensus Estimate for quarterly earnings is pegged at 77 cents per share projects an 11.5% decline from the year-ago quarter’s reported number.

Inter Parfums’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $211.6 million, suggesting a rise of 6.6% from the figure reported in the prior-year quarter. IPAR delivered an earnings beat of 46.7%, on average, in the trailing four quarters.

TreeHouse Foods, Inc. THS currently has an Earnings ESP of +3.20% and a Zacks Rank of 3. The company is likely to display a year-over-year decline in the bottom line, when it reports first-quarter 2022 earnings. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 55 cents, projecting a significant decline against earnings of 36 cents reported in the year-ago quarter.

TreeHouse Foods’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, suggesting a rise of 2.6% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 11.9%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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