McCormick stock gains after strong third-quarter results, raises EPS outlook

McCormick & Company (NYSE:MKC) shares are trading higher after the company reported third-quarter results and raised its full-year EPS outlook.

The company reported quarterly adjusted earnings per share of 83 cents, beating the Street’s result of 67 cents. Total quarterly sales were $1.679 billion, topping analyst consensus of $1.668 billion. Sales in the third quarter were comparable to the same period last year and reflected volume growth of 1%, partially offset by price.

Gross profit margin increased 170 basis points compared to the third quarter of last year. This growth was driven by favorable connectivity as well as savings from the company’s Comprehensive Continuous Improvement (CCI) program.

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“We achieved a significant milestone this quarter, delivering overall global positive volume growth, reflecting improving trends in both segments, and we expect this momentum to continue in the fourth quarter,” said Brendan M. Foley, president and CEO.

McCormick’s quarterly dividend of $0.42 per share of common stock will be paid on October 21 to shareholders of record on October 7.

Perspectives: McCormick raised its fiscal 2024 earnings per share (EPS) forecast to a range of $2.85-$2.90 from the previous estimate of $2.80-$2.85, which was in line with the consensus estimate of $2. $86. The company expects its sales to range from a decline of 1% to an increase of 1%, with minimal impact from currency changes.

In fiscal 2024, the company expects strong cash flow driven by earnings and working capital initiatives, and anticipates returning a significant portion of cash flow to shareholders in the form of dividends.

Price action: MKC shares are trading higher by 2.07% at $84.00 before the open of trading on Tuesday.

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This article McCormick Stock Gains After Strong Third Quarter Results and EPS Boost originally appeared on Benzinga.com