By Dean Seal

McCormick & Co. is guiding for higher earnings in the year ahead but potentially flat revenue given continuing uncertainty in consumer spending trends.

The maker of spices and flavorings said Thursday it expects earnings of $2.99 to $3.04 a share for fiscal 2025, up from $2.92 a share last year. Stripping out one-time items, adjusted earnings are projected to hit $3.03 to $3.08 a share. Analysts polled by FactSet had been targeting $3.10 a share.

Sales for the year could come in flat with fiscal 2024 or rise up to 2%. The top line would need to rise about 2% to reach current analyst targets, according to FactSet.

McCormick said the outlook reflects continued strength in volume trends, balanced against uncertainty in the consumer and macroeconomic environment. It also forecasts headwinds from foreign currency translation.

Shares slid 2.3% to $71.55 in premarket trading.

For the quarter ended Nov. 30, McCormick posted a profit of $215.2 million, compared with $219.3 million in the same period a year ago.

Earnings were 80 cents a share on an adjusted and unadjusted basis. Analysts surveyed by FactSet had been expecting 77 cents a share.

Sales rose 2.6% to $1.8 billion, above analyst estimates for $1.77 billion.

Higher volumes pushed up the top line, more than offsetting a pullback in prices. McCormick's consumer business, which sells spices and broths, logged a 4% gain while sales in its flavor solutions segment, which sells flavorings and food service products, ticked up 1%.

The company's gross profit margin expanded slightly thanks to savings from its cost-cutting program. Its operating margin was flat-year-over year. Higher income taxes weighed on the bottom line.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 23, 2025 07:04 ET (12:04 GMT)

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