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McCormick (MKC) Q4 Earnings Coming Up: Factors to Consider
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McCormick & Company, Incorporated (MKC - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Jan 25. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, suggesting an increase of 5.2% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 revenues is pegged at almost $7 billion, suggesting growth of 5.4% from the year-ago period’s reported figure.
Although the Zacks Consensus Estimate for quarterly earnings has moved down by a penny to 79 cents per share in the past seven days, it projects 8.2% growth from the figure reported in the year-ago period quarter. The consensus mark for fiscal 2023 earnings is pegged at $2.64 per share, indicating a rise of 4.4% from the prior-year period’s level.
Factors to Consider
McCormick is benefiting from solid demand for its compelling products and the efficient implementation of growth strategies. The company’s effective pricing strategy and improved underlying business volume are key drivers. Focus on brand marketing, new products, category management and differentiated customer engagement are yielding.
Management expects fiscal 2023 net sales growth of 5-7% year over year. The company anticipates adjusted operating income growth of 10-12% in the fiscal 2023. The Global Operating Effectiveness (“GOE”) Program is likely to have had a favorable impact on the fiscal 2023 operating income. McCormick envisions fiscal adjusted earnings per share (EPS) in the band of $2.62-$2.67 compared with $2.53 recorded in the fiscal 2022.
In its last earnings call, management highlighted that it expects an 8% headwind to fiscal 2023 adjusted EPS from higher interest expense stemming from a rising interest-rate environment, among other reasons. It anticipates a 1% headwind from an anticipated increase in McCormick’s projected adjusted effective tax rate. Also, divestitures are likely to hurt the company’s volumes in the near term.
McCormick & Company, Incorporated Price and EPS Surprise
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 -0.73%.
Some Stocks With Favorable Combination
Here are some companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank of 2. The company is slated to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% 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 Church & Dwight’s quarterly earnings of 64 cents per share suggests an increase of 3.2% from the year-ago quarter’s levels. CHD delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +3.43% and a Zacks Rank #3. The company is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of 6.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 77 cents suggests an increase of 5.5% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
Philip Morris (PM - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $8.9 billion, suggesting a rise of 9.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings of $1.44 per share suggests an increase of 3.6% from the year-ago quarter’s levels. PM has a trailing four-quarter earnings surprise of 5.8%, on average.
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McCormick (MKC) Q4 Earnings Coming Up: Factors to Consider
McCormick & Company, Incorporated (MKC - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Jan 25. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, suggesting an increase of 5.2% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 revenues is pegged at almost $7 billion, suggesting growth of 5.4% from the year-ago period’s reported figure.
Although the Zacks Consensus Estimate for quarterly earnings has moved down by a penny to 79 cents per share in the past seven days, it projects 8.2% growth from the figure reported in the year-ago period quarter. The consensus mark for fiscal 2023 earnings is pegged at $2.64 per share, indicating a rise of 4.4% from the prior-year period’s level.
Factors to Consider
McCormick is benefiting from solid demand for its compelling products and the efficient implementation of growth strategies. The company’s effective pricing strategy and improved underlying business volume are key drivers. Focus on brand marketing, new products, category management and differentiated customer engagement are yielding.
Management expects fiscal 2023 net sales growth of 5-7% year over year. The company anticipates adjusted operating income growth of 10-12% in the fiscal 2023. The Global Operating Effectiveness (“GOE”) Program is likely to have had a favorable impact on the fiscal 2023 operating income. McCormick envisions fiscal adjusted earnings per share (EPS) in the band of $2.62-$2.67 compared with $2.53 recorded in the fiscal 2022.
In its last earnings call, management highlighted that it expects an 8% headwind to fiscal 2023 adjusted EPS from higher interest expense stemming from a rising interest-rate environment, among other reasons. It anticipates a 1% headwind from an anticipated increase in McCormick’s projected adjusted effective tax rate. Also, divestitures are likely to hurt the company’s volumes in the near term.
McCormick & Company, Incorporated Price and EPS Surprise
McCormick & Company, Incorporated price-eps-surprise | McCormick & Company, Incorporated Quote
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 -0.73%.
Some Stocks With Favorable Combination
Here are some companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank of 2. The company is slated to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% 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 Church & Dwight’s quarterly earnings of 64 cents per share suggests an increase of 3.2% from the year-ago quarter’s levels. CHD delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +3.43% and a Zacks Rank #3. The company is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of 6.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 77 cents suggests an increase of 5.5% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
Philip Morris (PM - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $8.9 billion, suggesting a rise of 9.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings of $1.44 per share suggests an increase of 3.6% from the year-ago quarter’s levels. PM has a trailing four-quarter earnings surprise of 5.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.