McCormick (NYSE:MKC) & Co. reported on Tuesday a drop in fiscal Q3 profits to $170.1 million, down from $222.9 million the previous year, despite an increase in revenue to $1.68 billion from roughly $1.6 billion. The firm's adjusted earnings matched analysts' expectations at 65 cents per share, but sales fell short of the anticipated $1.7 billion.
According to InvestingPro data, the company has a market cap of $20.16B USD and a P/E Ratio of 31. The revenue growth for the last twelve months (LTM2023.Q2) was reported to be 2.79% with a quarterly revenue growth of 7.96%. The gross profit for the same period is $2369.5M USD with a gross profit margin of 36.36%.
The company's sales growth of 6% was driven by an 8% rise in prices, which offset a 2% decrease in volume. The gross profit margin also saw an expansion by 150 basis points, attributed to cost-saving measures and higher prices.
InvestingPro Tips indicates that McCormick's revenue growth has been accelerating and the company has raised its dividend for 37 consecutive years. The company is currently trading at a high P/E ratio relative to near-term earnings growth. These insights, along with many more, are available on InvestingPro's MKC page.
CEO Brendan Foley highlighted the slow recovery of the company's consumer business in the Asia-Pacific region, particularly China, as a factor affecting the company's performance. Increased employee compensation expenses and the company's withdrawal from the Russian market have also had an impact.
The company has been profitable over the last twelve months according to InvestingPro Tips. The return on assets for LTM2023.Q2 is reported to be 5.41%. The company's stock has seen a 1-year price total return of 5.17% despite recent dips. The next earnings date is set for October 3, 2023.
The InvestingPro Fair Value for McCormick & Co. is currently estimated at $72.37 USD, with a fair value from analyst targets at $87 USD. This information, along with other real-time metrics and tips, can be found on InvestingPro's platform, providing investors with valuable insights for their investment strategies.
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