McCormick & Company (NYSE:MKC) shares edged up 1% in premarket trading on Monday after the global spice and flavoring leader reported third-quarter results that topped Wall Street forecasts, marking its fifth straight quarter of volume-driven growth despite ongoing cost headwinds.
For the quarter ended August 31, the company posted adjusted earnings per share of $0.85, exceeding the analyst consensus of $0.82. Revenue reached $1.72 billion, slightly ahead of expectations of $1.71 billion, representing a 2.7% increase year-over-year. The company’s 2% organic sales growth was primarily fueled by higher volumes across key categories.
The Consumer segment led the gains, with sales up 3.8%, while the Flavor Solutions division recorded a 1.2% increase. Despite facing rising input costs and tariff-related pressures, McCormick expanded adjusted operating income by 1.8%, reaching $294 million, up from $288 million in the same period last year.
“Our third quarter results marked our fifth consecutive quarter of volume-led growth, reflecting our differentiation and the benefit of continued investments in our brands, expanded distribution, and innovation,” said Brendan M. Foley, Chairman, President, and CEO. “As a result of the dynamic global trade environment, our gross margin was further pressured by rising costs; however, we continued to drive operating profit growth through the effective execution of our cost savings initiatives.”
Looking ahead to fiscal year 2025, McCormick reaffirmed its sales growth outlook of 0% to 2% but updated its adjusted EPS guidance to a range of $3.00–$3.05, compared to the analyst consensus of $3.04. The revised guidance reflects continued challenges from higher commodity prices and additional tariffs introduced since August.
The modest share uptick underscores investor confidence in McCormick’s ability to navigate inflationary pressures while maintaining steady top-line growth and margin resilience.
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