McCormick’s (MKC) Upcoming Second Quarter Earnings: Factors to Watch Out for

McCormick & Company, incorporated MKC will likely see revenue and earnings decline when it reports fiscal second-quarter 2024 earnings on June 27. The Zacks Consensus Estimate for revenue is $1.6 billion, suggesting a decline of almost 2% from the year-ago quarter. reported character.

The Zacks Consensus Estimate for quarterly earnings has declined one cent over the past seven days to 59 cents per share, representing a decline of 1.7% from the figure reported in the same quarter a year earlier.

The global leader in flavors reports an earnings surprise of 5.4% on average for the trailing four quarters. In the last quarter, MKC surprised with results of 8.6%.

Factors worth paying attention to

MKC is bucking low volume trends as consumer demand remains challenging. It is worth noting that consumers are exhibiting value-seeking behavior as they continue to feel the pinch of food price inflation. Moreover, the company’s decision to exit its low-margin business and sell its canning business will likely put pressure on sales volumes in the fiscal second quarter.

The company is struggling with cost inflation, which is putting pressure on its margins. The company is also seeing rising selling and general administrative costs. As a result, the increased costs of marketing the brand are unfavourable. In addition, the company’s international presence exposes it to risk related to unfavourable exchange rates.

That being said, McCormick’s successful pricing strategy and savings efforts keep it well positioned for growth.

What the Zacks Model Reveals

Our proven model doesn’t predict McCormick’s earnings growth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. With our Earnings ESP filter, you can discover the best stocks to buy or sell before they are reported.

McCormick is sporting a Zacks Rank #4 (Sell) and an Earnings ESP of -2.25%.

Some stocks with a favorable combination

Here are some stocks worth considering as our model shows they too have the right combination of elements to beat earnings this reporting cycle.

Kimberly-Clark Corporation KMB currently has an Earnings ESP of +2.25% and a Zacks Rank #3. The company will likely see a decline in revenue when it releases its second-quarter 2024 data. The consensus revenue estimate was pegged at $5.08 billion, down 1.1% from the amount reported in the year-ago quarter. You can see complete list of today’s Zacks #1 ranked stocks here.

Zacks Consensus Estimates suggest Kimberly-Clark’s quarterly earnings per share of $1.67 suggests growth of 1.2% from the year-ago quarter. KMB surprises with results for the last four quarters, averaging 11.3%.

Clorox CLX currently has an Earnings ESP of +2.14% and a Zacks Rank of 3. The company is likely to see a decline in earnings and losses when it releases fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox’s quarterly earnings is estimated at 1.98 billion dollars, representing a decrease of 1.8% compared to the amount recorded in the prior-year quarter.

The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.53 suggests a decline of 8.4% from the prior-year quarter level. However, Clorox has delivered earnings surprises over the last four quarters, averaging 128.5%.

Domino’s Pizza, Inc. DPZ currently has an Earnings ESP of +2.18% and a Zacks Rank of 3. The Zacks Consensus Estimate for fiscal 2024 second quarter earnings per share is $3.66, suggesting year-over-year growth of 18.8%.

The Zacks Consensus Estimate estimates Domino’s Pizza’s quarterly revenues at $1.1 billion, up 7.8% from the prior-year quarter’s figure. DPZ surprises with results for the last four quarters, averaging 9.3%.

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

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