McCormick & Company (NYSE:MKC) is scheduled to report its third-quarter FY2023 results on October 6, before the market opens. The company’s preliminary results, released last month, indicated lower Q3 earnings due to the impact of multiple factors, including supply-chain pressures and elevated costs.
Based in the U.S., McCormick is a food company that sells spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
For Q3, Wall Street expects MKC to report adjusted earnings of $0.73 per share, lower than the prior-year period’s EPS of $0.80 per share.
Meanwhile, the consensus revenue estimate is pegged at $1.59 billion, implying year-over-year growth of 2.6%.
On September 7, MKC issued weak preliminary numbers for the third quarter and also cut its full-year 2022 guidance, citing supply-chain constraints, divestiture of the Kitchen Basics unit in Q3, changing buying patterns, and rising costs.
For Q3, the company projects sales to grow 3% year-over-year, while adjusted EPS is expected at $0.65.
McCormick expects 2022 sales to register 3% to 5% year-over-year growth (in constant currency) versus previous guidance of 5% to 7% growth. The company expects 2022 adjusted EPS in the range of $2.63 to $2.68 (much lower than the previous guidance of $3.03 to $3.08).
Is McCormick Stock a Buy, Sell, or Hold?
Given the challenges faced by the company, McCormick stock has received a Hold consensus rating on TipRanks based on four Holds and one Sell recommendation.
Interestingly, however, MKC stock has a Positive signal from hedge fund managers, who added 12,000 shares during the last quarter.
Further, it’s not just the hedge fund managers that are bullish on the stock. TipRanks’ Stock Investors tool shows that 1.9% of investors on TipRanks increased their exposure to MKC stock over the past 30 days.
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