Earnings Preview: McCormick & Company

| About: McCormick & (MKC)

Company Profile
McCormick & Company, Inc. engages in the manufacture, marketing, and distribution of flavor products and other specialty food products to the food industry worldwide. It operates in two segments, Consumer and Industrial.
McCormick & Company (NYSE:MKC) is scheduled to report its second quarter earnings results on June 27, 2012, before market open.

Technical Overview
(click to enlarge all images)
McCormick & Company has a market cap of $7.69 billion and it is currently trading around $57.39 with a 52 week range of $42.59 to $59.24. The stock has risen 13.86% year to date. The following table provides the key financial ratios for McCormick & Company:

Key Ratio Value
Current Ratio 1.24
PEG 2.43
P/E 20.89
Forward P/E 17.27
Profit Margin 9.15%
Return On Assets (ROA) 9.25%
Return On Equity (ROE) 22.94%

Recent News

  • On May 14, 2012, Michael R. Smith was appointed Chief Financial Officer and Vice President Finance for Europe, Middle East and Africa (EMEA) of McCormick and Company.
  • On May. 11, 2012, McCormick & Company announced that Geraldine Ezeka of Western School of Technology and Environmental Science, and Ryne Schanberger of Loch Raven High School are the 68th and 69th recipients of the Charles Perry McCormick Scholarship.
  • On April 17, 2012, McCormick & Company discussed their plans to drive continued sales and earnings growth at their investor conference titled "A World of Flavor." Through acquisitions, the expansion of leading brands and customized flavor solutions for industrial customers, the company is increasing its global footprint to meet the growing demand for flavor by consumers worldwide.
  • On April 16, 2012, McCormick & Company and Constellation Energy, a business unit of Exelon (NYSE:EXC), announced that McCormick's 363,000-square-foot distribution center in Belcamp, Md., now generates more electricity than it uses.
  • On March 28, 2012, The Board of Directors of McCormick & Company declared a quarterly dividend of $0.31 per share on its common stocks payable April 23, 2012, to shareholders of record on April 9, 2012.

Analyst Guidance and Earnings History
The second quarter revenues are expected to be $969.79 million when compared to $883.70 million for the same quarter last year. Earnings per share for the second quarter are expected to be 60 cents a share, up from a 55 cents a share in the year-ago period.

The average price target from analysts for McCormick & Company is $58.91 with average rating of OVERWEIGHT.

Out of the last 4 quarters, McCormick & Company has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for McCormick & Company:

Campbell Soup Co (NYSE:CPB), H.J. Heinz Company (HNZ), and Tyson Foods Inc. (NYSE:TSN), are considered as major competitors for McCormick & Company and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MKC over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.