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McCormick Gears Up for Q3 Earnings Release: Things to Keep in Mind

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McCormick & Company, Incorporated (MKC - Free Report) is likely to register a top-line decline when it reports third-quarter fiscal 2024 earnings on Oct. 1. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, suggesting a drop of 1.2% from the prior-year quarter’s reported figure.

The bottom line is likely to grow year over year. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 67 cents per share. This indicates growth of 3.1% from the year-ago quarter’s reported figure. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.

Things to Consider About McCormick’s Upcoming Results

MKC is experiencing strong business momentum that is expected to have positively impacted its third-quarter fiscal 2024 performance. The company's globally diverse portfolio, aligned with evolving consumer trends and innovative product platforms, enhances its market presence. Positive pricing actions and an anticipated recovery in volume trends are likely to have driven further growth. In addition, its effective cost-saving programs are yielding. The continuation of these upsides is likely to have benefited McCormick’s numbers in the to-be-reported quarter. 

Increased selling, general and administrative expenses due to heightened brand marketing investments are a concern. Ongoing soft volume trends, thanks to consumers’ value-seeking behavior amid financial anxiety, particularly among mid-to-low-income households, are likely to have impacted its performance. MKC’s significant international presence keeps it exposed to unfavorable currency risks.

 

Earnings Whispers for McCormick

Our proven model doesn’t conclusively 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MKC carries a Zacks Rank #2 and has an Earnings ESP of -1.79%.

Some Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.

Coty (COTY - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank of 3 at present. The company is expected to register top-and bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 20 cents. The consensus mark for earnings indicates a 122.2% surge from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for quarterly revenues is pegged at $1.7 billion, calling for a rise of 3.1% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 53.4%.

The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.14% and a Zacks Rank #2. KHC is expected to register a top-line decline when it reports third-quarter 2024 results. 

The Zacks Consensus Estimate for revenues is pegged at $6.4 billion, indicating almost a 2% drop from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 74 cents per share, suggesting 2.8% growth from the year-ago quarter’s tally. KHC has a trailing four-quarter earnings surprise of 4.7%, on average.

Clorox (CLX - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which calls for an increase of 17.7% from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.35 indicates growth of 175.5% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.

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


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