McCormick & Company, Incorporated ($MKC) Earnings (Q1 FY22)

McCormick & Company, Incorporated ($MKC) Earnings and Opinion:


McCormick & Company ($MKC) is a company in the Consumer Defensive sector and operates in the Packaged Foods industry. They are known for contributing their spices, seasonings, condiments, and other flavored products to the food industry. The company was founded in 1889 and is currently headquartered in Hunt Valley, Maryland. The company was first traded on the stock market in 1973. 

McCormick & Company EPS and Revenue (Q1 FY22):

  • EPS of $0.63 beating expectations of $0.62
  • Revenue of $1.52B beating expectations of $1.44B
  • EPS was down 12.5% (YOY) and Revenue was up 3% (YOY)
McCormick & Company FY22 Outlook:
  • Company expects sales to grow 3-5%
  • Operating income to grow by 13-15%
  • EPS to be in the range of $3.07-$3.12
Opinion:
Shares of McCormick & Company are currently trading higher pre-market as the company reported earnings this morning. The company posted strong reports for the first quarter of the fiscal year, with EPS slightly beating expectations and Revenue coming in pretty strong. EPS was down a little bit compared to last year, but revenue was up a slight 3% compared to this period last year. The strong earnings caused the outlook for the fiscal year to change, forecasts made by the company showed the growth of sales, operating income and EPS. They also had some emphasis on creating strong returns in the form of dividends to shareholders. McCormick & Company is a stock that has been around for a while and has had a staple on the industry, they have had a solid track on the stock market. I see this stock as a safer play while you generate income from their dividend payments. With the return of normalcy in the economy, McCormick is a company that has the potential to take-off and continue its solid growth track. I would pick up a position in this company if you are a dividend-growth investor. The payout ratio and yield percentage are in a reasonable state, so the company is reinvesting in itself while rewarding shareholders.


*Information from McCormick & Company, Yahoo Finance, and Zacks

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