By Connor Hart
McCormick & Co. is scheduled to report its fiscal second-quarter results Thursday before the market opens. Here is what you need to know.
SALES: The maker of spices and flavorings is expected to post $1.66 billion in sales for the recent quarter, slightly above the $1.64 billion it notched in the same period last year, according to FactSet.
NET INCOME: Wall Street projects the Hunt Valley, Md.-based company to report $169.1 million in net income, compared with net income of $184.2 million a year earlier.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at 65 cents a share. McCormick posted adjusted earnings of 69 cents a share a year ago.
The stock is down 8.6% over the past three months and was recently trading at $73.98.
WHAT TO WATCH
-- This earnings season has been challenging for packaged-food companies, UBS analysts say in a research note. As a result, they said the bar for what investors want McCormick to achieve has been lowered: "We would therefore not be surprised if an in-line F2Q print and simply maintaining the low end of the EPS range is viewed as enough." A cut to McCormick's EPS outlook, though, would likely be viewed as disappointing.
-- Investors will be looking for commentary around tariffs, as well as the company's mitigation efforts. Given timing, UBS analysts don't expect McCormick to report a meaningful tariff impact in the recent quarter. However, they estimate tariffs could result in a $150 million gross, unmitigated headwind on an annualized basis.
-- Investors will also be looking for insights on consumer sentiment as inflation-weary shoppers continue to prioritize value and limit discretionary spending. Last quarter, McCormick noted significant growth among sales of its larger product sizes, an indication that consumers are more focused on value per ounce. Consumers are also cooking at home more often, which could make them more reliant upon spices and seasonings.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 25, 2025 13:44 ET (17:44 GMT)
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