McCormick & Company MKC shares are trading higher after the company reported its third-quarter results and raised its full-year EPS outlook.
The company registered quarterly adjusted earnings per share of 83 cents, beating the street view of 67 cents. Quarterly sales total $1.679 billion, outpacing the analyst consensus of $1.668 billion. Sales in the third quarter were comparable to the year-ago period, reflecting volume growth of 1%, partially offset by price.
Gross profit margin expanded by 170 basis points compared to the third quarter of last year. This expansion was driven by favorable mix as well as cost savings led by the company’s Comprehensive Continuous Improvement (CCI) program.
“This quarter we reached a meaningful milestone by delivering total global positive volume growth, reflecting improved trends across both segments, and we expect this momentum to continue into the fourth quarter,” said Brendan M. Foley, President and CEO.
McCormick’s quarterly dividend of $0.42 per share on its common stocks is payable October 21 to shareholders of record October 7.
Outlook: McCormick has raised its fiscal year 2024 earnings per share (EPS) outlook to a range of $2.85 to $2.90, compared to the previous estimate of $2.80 to $2.85, which was in line with the consensus estimate of $2.86. The company expects its sales to range between a decline of 1% to an increase of 1%, with minimal impact from currency.
For fiscal 2024, the company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
Price Action: MKC shares are trading higher by 2.07% to $84.00 premarket at last check Tuesday.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
