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McCormick (MKC) Gears Up for Q2 Earnings: Things to Note
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McCormick & Company, Incorporated (MKC - Free Report) is likely to register top-and-bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jun 29. The Zacks Consensus Estimate for revenues is pegged at $1,670 million, suggesting a rise of 8.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has risen by a penny in the past 30 days to 57 cents per share. The projection indicates an increase of 18.8% from the figure reported in the year-ago period quarter. McCormick delivered an earnings surprise of 20.4% in the last reported quarter.
McCormick & Company, Incorporated Price, Consensus and EPS Surprise
McCormick has been benefiting from its portfolio strength, which has been gaining from the company’s prudent acquisitions. The acquisitions of FONA International and the parent company of Cholula Hot Sauce (both concluded in 2020) have been yielding positive results.
MKC’s focus on saving costs and enhancing productivity through its ongoing Comprehensive Continuous Improvement program has also been aiding. Additionally, on its last earnings call, McCormick stated that it expects its Global Operating Effectiveness program to scale up as fiscal 2023 progresses.
Moreover, the company is on track to generate cost savings of $75 million in 2023 through its actions to normalize supply-chain costs and streamline its organization. These factors bode well for the quarter under review amid cost inflation.
McCormick has been grappling with cost inflation for a while now. While management expects mid-teens cost inflation in 2023, it expects to fully counter inflation through its pricing and other actions. Apart from this, the company is anticipating a significant rise in interest expenses in fiscal 2023. It also expects brand marketing and employee benefit expenses to increase year over year.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for McCormick this time. 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, which is the case here.
McCormick has an Earnings ESP of +4.43% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
General Mills (GIS - Free Report) currently has an Earnings ESP of +1.91% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.2 billion, which implies a rise of 5.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.05, which indicates a 6.3% decline from the year-ago period figure. GIS delivered an earnings surprise of 6.6% in the last reported quarter.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. KMB is expected to register a top-and-bottom-line increase when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at roughly $5.1 billion, calling for growth of 0.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.39 suggests a rise of 3.7% from the figure reported in the year-ago fiscal quarter. KMB has a trailing four-quarter earnings surprise of 5.1%, on average.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.18% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates nearly 4% growth from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.
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McCormick (MKC) Gears Up for Q2 Earnings: Things to Note
McCormick & Company, Incorporated (MKC - Free Report) is likely to register top-and-bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jun 29. The Zacks Consensus Estimate for revenues is pegged at $1,670 million, suggesting a rise of 8.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has risen by a penny in the past 30 days to 57 cents per share. The projection indicates an increase of 18.8% from the figure reported in the year-ago period quarter. McCormick delivered an earnings surprise of 20.4% in the last reported quarter.
McCormick & Company, Incorporated Price, Consensus and EPS Surprise
McCormick & Company, Incorporated price-consensus-eps-surprise-chart | McCormick & Company, Incorporated Quote
Factors to Consider
McCormick has been benefiting from its portfolio strength, which has been gaining from the company’s prudent acquisitions. The acquisitions of FONA International and the parent company of Cholula Hot Sauce (both concluded in 2020) have been yielding positive results.
MKC’s focus on saving costs and enhancing productivity through its ongoing Comprehensive Continuous Improvement program has also been aiding. Additionally, on its last earnings call, McCormick stated that it expects its Global Operating Effectiveness program to scale up as fiscal 2023 progresses.
Moreover, the company is on track to generate cost savings of $75 million in 2023 through its actions to normalize supply-chain costs and streamline its organization. These factors bode well for the quarter under review amid cost inflation.
McCormick has been grappling with cost inflation for a while now. While management expects mid-teens cost inflation in 2023, it expects to fully counter inflation through its pricing and other actions. Apart from this, the company is anticipating a significant rise in interest expenses in fiscal 2023. It also expects brand marketing and employee benefit expenses to increase year over year.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for McCormick this time. 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, which is the case here.
McCormick has an Earnings ESP of +4.43% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
General Mills (GIS - Free Report) currently has an Earnings ESP of +1.91% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.2 billion, which implies a rise of 5.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.05, which indicates a 6.3% decline from the year-ago period figure. GIS delivered an earnings surprise of 6.6% in the last reported quarter.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. KMB is expected to register a top-and-bottom-line increase when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at roughly $5.1 billion, calling for growth of 0.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.39 suggests a rise of 3.7% from the figure reported in the year-ago fiscal quarter. KMB has a trailing four-quarter earnings surprise of 5.1%, on average.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.18% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates nearly 4% growth from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.