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Core Viewpoint - McCormick & Co. (NYSE: MKC) is expected to benefit from the trend of increased food consumption at home as consumers reduce discretionary spending on dining out, leading to higher demand for its products [1] Group 1: Company Analysis - The investment thesis suggests that MKC is positioned well to capitalize on changing consumer behavior towards home dining [1] - The company is viewed as having long-term growth potential, particularly as it aligns with value investing principles [1] Group 2: Market Context - The current economic environment is prompting consumers to pull back on discretionary spending, which is likely to drive demand for food products that can be prepared at home [1]

Financial Performance - Net sales for the three months ended August 31, 2024, were $1,679.8 million, a slight decrease from $1,684.7 million in the same period last year[5] - Gross profit increased to $649.9 million for the three months ended August 31, 2024, compared to $622.8 million in the prior year, reflecting a gross margin improvement[5] - Operating income rose to $286.5 million for the three months ended August 31, 2024, up from $245.0 million year-over-year, indicating a 16.3% increase[5] - Net income for the three months ended August 31, 2024, was $223.1 million, compared to $170.1 million in the same period last year, representing a 31.1% increase[7] - Earnings per share (EPS) for the three months ended August 31, 2024, were $0.83, up from $0.63 in the prior year, marking a 31.7% increase[5] - Total operating income excluding special charges for the nine months ended August 31, 2024, was $762.0 million, up from $712.9 million in the same period of 2023, representing a growth of 6.9%[81] - Operating income excluding special charges for the three months ended August 31, 2024, was $288.4 million, compared to $251.1 million for the same period in 2023, reflecting an increase of 14.8%[79] Cash Flow and Assets - Cash and cash equivalents increased to $200.8 million as of August 31, 2024, compared to $166.6 million at the end of the previous period[9] - Total assets grew to $13,204.9 million as of August 31, 2024, up from $12,862.3 million at the end of the previous period[9] - The company reported a net cash flow provided by operating activities of $463.2 million for the nine months ended August 31, 2024, down from $660.1 million in the prior year[12] Shareholder Returns - The company declared cash dividends of $0.42 per share for the three months ended August 31, 2024, compared to $0.39 in the same period last year[5] - The company paid dividends totaling $112.9 million during the three months ended August 31, 2024[14] - As of August 31, 2024, $472.5 million remained of the $600 million share repurchase program authorized in November 2019[73] Liabilities and Equity - Total liabilities decreased slightly to $7,753.9 million as of August 31, 2024, compared to $7,778.8 million at the end of the previous period[9] - Total shareholders' equity as of August 31, 2024, was $5,451.0 million, up from $5,354.2 million at the end of May 2024[14] Special Charges and Costs - Special charges recorded during the three months ended August 31, 2024, amounted to $1.9 million, primarily related to the Global Operating Effectiveness program[29] - Special charges for the three months ended August 31, 2024, totaled $1.9 million, compared to $6.1 million in the same period of 2023, indicating a significant reduction[81] - The GOE program incurred total costs of approximately $48 million as of November 30, 2023, with special charges of $4.6 million recognized during the nine months ended August 31, 2024[31] Operational Insights - The company expects higher net sales and cash flow in the second half of the fiscal year due to seasonal consumer purchasing patterns[21] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[5] - The company has integrated manufacturing and warehousing across its segments to maximize cost efficiencies, although segments are managed separately[78] Pension and Other Benefits - For the nine months ended August 31, 2024, total contributions to pension plans were $5.2 million, compared to $7.4 million for the same period in 2023[59] - The expected return on plan assets for the nine months ended August 31, 2024, was $(29.7) million, compared to $(31.8) million for the same period in 2023[59] - The net aggregate amount of pension and other postretirement benefits income, excluding service cost components, was $(1.9) million for Q3 2024, compared to $(2.7) million for Q3 2023[60] Foreign Currency and Financial Instruments - As of August 31, 2024, the notional amount of outstanding foreign currency exchange contracts was $1,110.7 million, up from $1,000.4 million as of November 30, 2023[40] - The company recognized a gain of $2.4 million from cross currency contracts for the nine months ended August 31, 2024, compared to a loss of $17.6 million in the same period of 2023[48] Stock Options and Compensation - Stock-based compensation for the three months ended August 31, 2024, was $8.8 million[14] - The weighted-average grant-date fair value of stock options granted in 2024 was $17.63, down from $19.35 in 2023[62] - The number of stock options outstanding at the end of the period increased to 6.1 million in 2024 from 5.3 million in 2023[63]

We had recommended coming back into McCormick & Company, Incorporated (NYSE: MKC ) stock in October 2023, catching the bottom in shares, and reiterated that call both in March 2024 as the company was " crawling Pay yourself dividends with outsized returns Get more with our playbook to significantly grow your wealth by embracing a blended trading and investing approach at our one-stop shop. Our prices go up next month, but right now we have a big sale on the current price. Join NOW and you can lock in 75% of ...

McCormick & Company, Incorporated (NYSE:MKC) Q3 2024 Earnings Conference Call October 1, 2024 8:00 AM ET Company Participants Faten Freiha - Vice President, Investor Relations Brendan Foley - President and Chief Executive Officer Mike Smith - Executive Vice President and Chief Financial Officer Marcos Gabriel - Incoming Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Peter Galbo - Bank of America Alexia Howard - Bernstein Max G ...

McCormick & Company, Incorporated (MKC) reported solid third-quarter fiscal 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate, and earnings increased year over year. The company achieved a significant milestone by delivering overall global positive volume growth in the quarter, indicating improving trends across both business segments. The momentum is expected to carry into the fourth quarter. In the Consumer segment, MKC recorded solid volume growth despite facing a challengi ...

McCormick (MKC) reported $1.68 billion in revenue for the quarter ended August 2024, representing a yearover-year decline of 0.3%. EPS of $0.83 for the same period compares to $0.65 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.66 billion, representing a surprise of +0.94%. The company delivered an EPS surprise of +22.06%, with the consensus EPS estimate being $0.68. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Core Insights - McCormick (MKC) reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and showing an increase from $0.65 per share a year ago, resulting in an earnings surprise of 22.06% [1] - The company achieved revenues of $1.68 billion for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 0.94%, with no year-over-year change in revenue [2] - McCormick has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The sustainability of McCormick's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $1.76 billion, and for the current fiscal year, it is $2.85 on revenues of $6.67 billion [7] Industry Context - The Food - Miscellaneous industry, to which McCormick belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

FOR IMMEDIATE RELEASE McCORMICK REPORTS THIRD QUARTER PERFORMANCE AND REAFFIRMS 2024 OUTLOOK HUNT VALLEY, Md., October 1, 2024 - McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the third quarter ended August 31, 2024 and reaffirmed fiscal 2024 outlook for sales and operating profit. • Sales in the third quarter were comparable to the year-ago period, reflecting volume growth of 1%, partially offset by price. • Operating income was $287 million in ...

HUNT VALLEY, Md., Oct. 1, 2024 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the third quarter ended August 31, 2024 and reaffirmed fiscal 2024 outlook for sales and operating profit. Sales in the third quarter were comparable to the year-ago period, reflecting volume growth of 1%, partially offset by price. Operating income was $287 million in the third quarter compared to $245 million in the year-ago period. Adjusted operating ...