McCormick shares dip despite the company's earnings beating expectations and raising its full-year outlook. Yahoo Finance Live breaks down the company's earnings report.
Video Transcript
BRAD SMITH: We're also watching the company behind those seasonings on your rub this weekend. McCormick. Shares of the company-- huh, yikes-- dipping today. Despite beating Wall Street expectations and raising its full year outlook sales, they grew 8% aided by higher prices here. And this was particularly interesting to look through for McCormick here because I don't know that I've ever been that enamored by some of the segments. I mean, it's pretty straightforward.
They've got a consumer segment. They've got a flavor solution segment. I just wonder what you have to do to get the title of President of Flavor Solutions at McCormick. That would be kind of cool. But at the end of the day, the growth in that particular flavor solution segment, mighty flavorful for some investors here that move higher year over year and quite handily coming in at about $747.1 million versus the 670.7 that they saw a year prior there.
And then the six month period also, continuing to show some significant growth increasing by about 12% from the second quarter of 2022 is kind of the round figure if you want to put it on--
JULIE HYMAN: Yeah, I was just looking up to see if there were any more headlines coming out of the conference call or anything because it's a little bit confusing why the stock is down. It raised its full year forecast for earnings. Sales just came in line with estimates and they didn't change their sales forecast for the year. So perhaps there's a little bit of disappointment bound up with that. I always have fond thoughts about McCormick because it's based in Hunt Valley Maryland, which is not so far from where I grew up.
And periodically, if you drive by a McCormick facility, you will indeed smell the spice mix wafting through the air, which is kind of a fun thing.
BRAD SMITH: Such a great word, wafting, especially when it comes to spices. A lot of people are going to be seeing those scents and flavors wafting through their backyards over the course of this next week.
JULIE HYMAN: That's true.
BRAD SMITH: But it could be on the volume decline as well. They had a 1% volume decline within the flavor solutions segment, also 1% volume decline from the company's strategic decisions to discontinue their low margin business in the consumer segment as well there. So perhaps there's a little bit more color that they're providing on that or a little bit more flavor they're providing on that--
JULIE HYMAN: And just so all of our viewers know, Brad has now named himself President of Flavor Solutions.
BRAD SMITH: At least in Slack. You can be anything you want to in Slack.
JULIE HYMAN: It's true.
BRAD SMITH: Including Alexis Ohanian's best friend. He is my profile picture in Slack for anybody who was wondering.
