McCormick & Company Inc. has recently announced its first quarter fiscal results for 2018 which reportedly have exceeded market estimates and displayed year-over-year improvements. Notable surges were also recorded for sales, income, consumer segment and revenues.
The EPS of the spice company was noted at $3.18 compared to $0.74 last year which included the non-recurring net favorable impact of the recent U.S. tax legislation. A 32% to $1.00 data was also recorded for the adjusted earnings per share. This was at $0.76 in the same period of last year.
“We are focused on growth, delivering against our objectives, strengthening our organization and building the McCormick of the future. Through the execution of our strategies we are becoming even better positioned to drive future growth and are confident in our continued success.” Chief Executive Officer and President Lawrence E. Kurzius told reports.
Variety of spices McCormick's bottle - McCormick & Company is a Fortune 1000 company that manufactures spices, herbs, and flavorings for retail, commercial, and industrial markets.
The spice company noted a 19% sales increase in the first quarter term. This was a $1.2 billion increase which also met the market expectations. The strength in sales rooted from the recent acquisitions o fRB Foods and Giotti acquisitions, and its new product line-ups. The company also recoreded increases in the regions of America, EMEA (Europe, the Middle East, and Africa) and Asia Pacific. This also included a 4% favorable impact from currency.
In further details, the Consumer Segment of the company added 19% which included a 4%avorable impact from currency and 13% from the incremental impact of RB Foods. Other sales increases were recorded in Americas and Asia/Pacific regions.
More so, the flavor solutions sector of McCormick saw a 18% sales drive. The company had 15% sales growth in terms of constant currency.
"Both our consumer and flavor solutions segments contributed to our constant currency sales growth of 15%. Our consumer segment grew across each region led by incremental sales from the acquisition of RB Foods in addition to strong growth in our Asia/Pacific region, led by China.” Kurzius added.
McCormick also revised its financial outlook for 2018. The company now expects an increase in sales year-on-year by 13% to 15%. To add, the company also estimated the earnings per share to be around $6.85 to $6.95 in fiscal year of 2018. This is compared to the $3.72 of 2017.
Additionally, the adjusted earnings per share is now estimated to be around $4.85 to $4.95 – an increase from 14%-16% or $4.26 in 2017.
“With our vision to bring the joy of flavor to life and our steadfast focus on growth, performance, and people, we are confident in our continuing momentum for growth in 2018 to deliver strong financial results and build value for our shareholders." Kurzius expressed further.
Despite the optimistic earnings results, shares of McCormick remained bearish in its recent trades. The most recent session recorded an opening at 106.43 which ended at the close of 105.89 - a 0.47% decrease from the preceding session.
While no signs of bullish movements has been indicated, a sell would be much rather advised for the company as its Coppock curve rests low in its recent signal. The indicator displayed a performance at -5.95 which would strengthen a sell position for McCormick as a company.
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