McCormick & Company (NYSE:MKC) shares rose 4.79% in premarket trading after the flavour company reported third-quarter earnings and revenue above analyst expectations and reaffirmed its full-year outlook.
McCormick reported adjusted earnings of $0.86 per share, exceeding the analyst consensus estimate of $0.76.
Revenue increased 17.4% to $2.02 billion from $1.72 billion in the same period a year earlier, compared with an analyst estimate of $1.98 billion.
The McCormick de Mexico acquisition contributed 14.6 percentage points to revenue growth during the quarter, while organic sales increased 1.9%.
“Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment,” Chairman, President and CEO Brendan M. Foley said. “We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins.”
Consumer Segment Sales Increase 25%
Net sales in McCormick’s Consumer segment increased 25% to $1.22 billion during the quarter.
The Flavor Solutions segment recorded an 8% increase in net sales to $809 million.
Gross profit margin expanded by 190 basis points to 39.3%. The company attributed the increase to the McCormick de Mexico acquisition, higher sales and savings generated through its Comprehensive Continuous Improvement programme.
These factors were partly offset by higher commodity and freight costs.
McCormick Reaffirms Fiscal 2026 Earnings Guidance
McCormick maintained its fiscal 2026 adjusted earnings guidance of between $3.05 and $3.13 per share, representing expected growth of 2% to 5%.
The midpoint of the guidance range is $3.09. The company’s outlook incorporates expectations for further margin expansion and benefits from integrating the McCormick de Mexico acquisition.