McCormick Beats Q2 Profit Estimates, Shares Rise 5%
Summary
McCormick & Company (MKC) shares surged over 5% after reporting stronger-than-expected fiscal Q2 adjusted EPS of $0.69, surpassing the $0.66 consensus. Net sales rose 1% to $1.66 billion, meeting expectations. The company reaffirmed its fiscal 2025 guidance, including adjusted EPS of $3.03-$3.08, citing effective strategies to offset tariff costs. CEO Lawrence Kurzius expressed confidence in long-term growth and margin expansion plans, reassuring investors about the company's financial health and strategic resilience.
McCormick Shares Climb on Strong Q2 Earnings, Reaffirms Full-Year Outlook
BALTIMORE, MD – June 26, 2025 – McCormick & Company (NYSE: MKC), a global leader in flavor, saw its shares advance by over 5% during intra-day trading today following the release of its fiscal second-quarter earnings report. The company surpassed analyst expectations for profit and maintained its full-year financial guidance, attributing its resilience to robust strategic initiatives designed to counteract rising tariff-related costs.
For the second fiscal quarter, McCormick reported net sales of $1.66 billion, marking a 1% increase year-over-year. This figure aligned precisely with market expectations. Adjusted earnings per share (EPS) for the quarter stood at $0.69. While flat compared to the previous year's second quarter, this performance exceeded the consensus analyst forecast of $0.66, signaling operational efficiency despite external pressures.
Looking ahead, McCormick reiterated its fiscal year 2025 guidance, projecting adjusted EPS to fall within the range of $3.03 to $3.08. This outlook remains comfortably above the current consensus estimate of $3.02. The company also anticipates operating income growth of 3% to 5% for the full fiscal year. Sales projections for fiscal 2025 remain consistent, with the company expecting annual sales to be flat to up 2%.
Lawrence Kurzius, Chairman and CEO of McCormick, expressed strong confidence in the company's long-term growth trajectory during the earnings call. He highlighted the effectiveness of McCormick's detailed margin expansion plans and its proactive strategies specifically designed to mitigate the impact of tariff-driven cost inflation. These measures appear to be successfully safeguarding profitability and supporting the company's financial outlook.
The positive earnings surprise and the reaffirmation of guidance underscore McCormick's ability to navigate a challenging economic environment, particularly concerning supply chain and tariff-related expenses. Investors reacted favorably to the news, pushing the stock higher as the market recognized the company's operational strength and strategic foresight in managing costs and maintaining profitability.