Investors Response Muted To McCormick's Q3 EPS Beat, Upbeat Outlook

McCormick & Company, Incorporated MKC delivered better than expected EPS and inline revenue for the third quarter. The company boosted its full year adjusted EPS forecast and sees revenue at the upper end of earlier forecast.

The company reported net income of $127.7 million, or $1.00 per share, for the third quarter, up from $97.6 million, or $0.76 a share, in the year-ago quarter. On an adjusted basis too, net income advanced from $109.7 million to $131.1 million and EPS from $0.85 to $1.03. Street predicted an EPS of $0.94.

McCormick's net sales grew from $1.059 billion to $1.09 billion and came in line with the analysts' estimates.

President and CEO, Lawrence Kurzius, commented, "Consumer demand for healthy and high quality flavors continues to grow in markets around the world. In both our consumer and industrial segments, we are meeting this demand with a broad portfolio of on-trend products in our base business, innovative new products and through acquisitions. "

Going forward, McCormick lifted its adjusted EPS forecast from $3.68-$3.75 to $3.75-$3.79 while expecting sales to grow about 3 percent in the full year. The revised revenue outlook is at the upper end of its earlier forecast. Street analysts' are looking for an EPS of $3.75 on revenue growth of 2.7 percent.

The stock fell $0.39, or 0.40 percent, to $97.00 in the pre-market trading on Friday.