Core Viewpoint - McCormick & Company, Incorporated (MKC) is expected to report a decline in both revenue and earnings for the second quarter of fiscal 2024, with revenue estimates at $1.6 billion, indicating a nearly 2% decrease from the previous year [1]. Financial Performance - The trailing four-quarter earnings surprise for MKC averages 5.4%, with an 8.6% surprise in the last reported quarter [2]. - The Zacks Consensus Estimate for MKC's earnings per share has moved down by a penny to 59 cents, projecting a 1.7% decline from the year-ago period [14]. Cost and Margin Pressures - MKC is facing cost inflation, which is negatively impacting margin performance, alongside rising selling and general administrative expenses [3]. - Elevated brand marketing costs are contributing to the financial strain, and the company's international operations expose it to unfavorable currency risks [3]. Strategic Positioning - Despite the challenges, McCormick's effective pricing strategy and cost-saving efforts position it for potential growth [5]. - The company is experiencing soft volume trends as consumer demand remains challenging, with consumers exhibiting value-seeking behavior due to food inflation [15]. Earnings Prediction - The current Zacks Rank for MKC is 4 (Sell), with an Earnings ESP of -2.25%, indicating that an earnings beat is not anticipated this reporting cycle [7][6].

This is the 100th year of consecutive dividend payments by the Company. For information contact: McCormick & Company, Incorporated is a global leader in flavor. With over $6.5 billion in annual sales across 150 countries and territories, we manufacture, market, and distribute herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry including retailers, food manufacturers and foodservice businesses. Our most popular brands with trademark registrations include McCormick, Fren ...

Core Insights - The consensus EPS estimate for McCormick has been adjusted downward by 0.3% over the past 30 days, indicating a reassessment by analysts [1] - Analysts project 'Net Sales- Flavor Solutions' to reach $725.85 million, reflecting a year-over-year decline of 2.8% [2] - The average prediction for 'Net Sales- Consumer' is set at $892.37 million, which is a decrease of 2.2% from the previous year [4] - Quarterly earnings are expected to be $0.59 per share, a decline of 1.7% year over year, with revenues projected at $1.63 billion, down 2% from the same quarter last year [5] - 'Operating income excluding special charges and transaction and integration expenses- Consumer' is estimated at $151.21 million, compared to $153.60 million a year ago [7] - For 'Operating income excluding special charges and transaction and integration expenses- Flavor Solutions', the estimate is $78.38 million, down from $81.40 million the previous year [9] - McCormick shares have returned -4.9% over the past month, underperforming the Zacks S&P 500 composite, which increased by 2.7% [10]

Core Viewpoint - The article discusses three stocks considered overvalued in the current market, highlighting their financial metrics and growth prospects, particularly in the context of the broader market's valuation concerns. Group 1: Zoom Video Communications (ZM) - Zoom Video Communications is identified as overvalued, with a forward P/E ratio of approximately 23x, which is relatively low for the tech sector [4] - The company's revenue growth is lagging behind inflation, with analysts forecasting only 1.4% growth in the next 12 months [5] - ZM stock has declined by 21% in 2024 and is trading below its 2019 debut price, despite analysts having a "neutral" rating and a price target suggesting it is undervalued [6] Group 2: McCormick & Co. (MKC) - McCormick & Co. has a forward P/E ratio of 24.1x, exceeding the S&P 500 average of 19.5x and the consumer staples sector average of around 20.1x [9] - The stock has decreased by 25% over the past year, which may attract income-oriented investors due to its status as a dividend aristocrat, having increased dividends for over 25 consecutive years [10] - The company projects full-year 2024 sales growth between -1% to 1%, with a maximum earnings increase of 5% year-over-year, facing challenges from consumer preferences for store brands [11] Group 3: Sherwin-Williams (SHW) - Sherwin-Williams has a P/E of 32x and a forward P/E of 26.2x, necessitating exceptional growth to justify its valuation [13] - The company missed earnings expectations in its first-quarter report, with sales meeting guidance only at the lower end [13] - Despite being a dividend aristocrat with a 47-year history of dividend increases, the current 0.95% yield is not compelling, and stronger economic growth is needed for the stock to perform better [15] Group 4: Market Overview - The overall market is characterized by thin breadth, with much of the growth concentrated in a small number of technology stocks [2] - The average P/E ratio of S&P 500 stocks is at 24.7x, indicating a generally overvalued market [16] - Investors are advised to be selective, as not all high P/E stocks are overvalued, but caution is warranted before making new investments [17]

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Revenues are expected to be $1.63 billion, down 2% from the year-ago quarter. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Thus, a positive or negative Earnings E ...

HUNT VALLEY, Md., June 5, 2024 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today released its 2023 Purpose-led Performance (PLP) Progress Report, which provides an update on the Company's progress towards its sustainability commitments, goals, and the initiatives that support them. McCormick remains committed to delivering strong financial performance while doing what's right for People, Communities, and the Planet. "I am incredibly proud of the positive impact ...

Company Overview - McCormick & Company, Incorporated is a global leader in flavor with over $6.5 billion in annual sales across 150 countries and territories [3] - The company manufactures, markets, and distributes a wide range of products including herbs, spices, seasonings, condiments, and flavors for the food and beverage industry [3] - McCormick operates in two segments: Consumer and Flavor Solutions, which complement each other and drive sustainable growth [3] Upcoming Financial Results - McCormick is scheduled to conduct a conference call and webcast for its second quarter 2024 financial results on June 27, 2024, at 8:00 a.m. Eastern Time [1] - The call will be hosted by key executives including Brendan Foley (President & CEO), Mike Smith (Executive Vice President & CFO), and Faten Freiha (Vice President of Investor Relations) [1] - A live audio webcast and accompanying presentation materials will be available on the McCormick website [1] Additional Information - If unable to attend the live webcast, the presentation will be archived on the McCormick website, and an audio replay will be available until July 18, 2024 [2] - The company was founded in 1889 and is headquartered in Hunt Valley, Maryland, USA, with a commitment to sustainability and flavor [4]

Ms. Sheppard brings over 35 years of experience in finance and accounting following a stellar career with P&G. Her expertise includes capital deployment and asset management, business process reengineering, acquisitions and divestures, external financial reporting and controls, and Sarbanes-Oxley compliance. Prior to her retirement in 2021, Ms. Sheppard led P&G's global finance, accounting, and treasury operations teams in over 65 countries. She held various senior financial leadership positions within the ...

While no company grows forever, some of the best stocks to invest in now stand the test of time better than others. These companies tend to have stable growth trajectories due to their overall position in the market and their products. Examples of these stable goods and services are things like hygiene products, construction materials, basic tools, and food products. Given their ubiquity and necessity, pricing demands they remain accessible to a wide range of consumers to solidify their sales. As such, comp ...

McCormick & Company (MKC) is well-positioned to increase its presence through acquisitions to grow its portfolio strategically. The global leader in flavor's focus on brand marketing, new products and packaging innovation continues to drive growth. The company's cost-saving programs position it well to support investments and drive operating margin growth. The Zacks Rank #2 (Buy) company's shares have increased 12.8% in the past three months compared with the industry's growth of 4.1%. The stock has gained ...