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McCormick (MKC) Queued for Q2 Earnings: Things to Consider

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McCormick & Company, Incorporated (MKC - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2022 numbers on Jun 29. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,617 million, suggesting an increase of 3.9% from the prior-year quarter’s reported figure.

However, McCormick’s bottom line is likely to decline year over year. The Zacks Consensus Estimate for quarterly earnings moved down by a penny to 65 cents per share in the last seven days, suggesting a drop of 5.8% from the figure reported in the prior-year quarter. In the last reported quarter, the company delivered an earnings surprise of 6.8%. This manufacturer, marketer and distributor of spices, seasoning mixes, condiments and other flavorful products has a trailing four-quarter earnings surprise of 7.3%, on average.

 

Things To Know

McCormick is benefiting from increased demand for its products as it continues to capitalize on healthy and flavorful cooking, increased digital engagement and purpose-minded practices. The robust recovery in the away-from-home demand bodes well. Focus on strategic acquisitions and innovations are also yielding. Continuation of these aspects bodes well for the company’s quarter to be reported performance.

Yet, McCormick is grappling with cost inflation with an escalation in transportation costs. The company’s performance is also bearing the brunt of broad-based supply chain challenges. Although management is on track to counter the inflationary pressure through various pricing and cost-saving actions, these headwinds pose a threat to the second-quarter performance.

What the Zacks Model Unveils

Our proven model does not predict 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 #4 (Sell) and has an Earnings ESP of -1.75%.

Some Stocks With Favorable Combinations

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

Archer Daniels (ADM - Free Report) currently has an Earnings ESP of +3.80% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for ADM’s quarterly earnings has moved up by 6.3% in the past 30 days to $1.69 per share. The consensus mark indicates 27.1% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archer Daniels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. ADM has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

The Kraft Heinz Company (KHC - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly earnings has remained unchanged in the past 30 days at 68 cents per share. The projection suggests a 12.8% slump from the year-ago quarter’s reported figure.  

Kraft Heinz’s top line is also expected to fall year over year. The consensus mark for revenues is pegged at $6.4 billion, indicating a decline of 3.3% from the figure reported in the year-ago quarter. KHC has a trailing four-quarter earnings surprise of 15.4%, on average.

Corteva (CTVA - Free Report) currently has an Earnings ESP of +8.12% and a Zacks Rank of 3. The company will likely register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.46 per share in the past 30 days. The consensus mark for CTVA suggests 4.3% growth from the year-ago quarter’s reported number.

Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.4% from the figure reported in the prior-year quarter. CTVA has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

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


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