FX.co ★ McCormick Reaffirms FY24 Outlook - Update

McCormick & Company (MKC) has reaffirmed its financial outlook for the fiscal year 2024, covering sales, operating profit, and adjusted earnings per share. The company anticipates earnings per share (EPS) for 2024 to fall within the range of $2.76 to $2.81. Notably, special charges are expected to reduce EPS by $0.04 during this period. Excluding these special charges, McCormick projects adjusted EPS for 2024 to be between $2.80 and $2.85. The firm forecasts that sales for 2024 will either decline by up to 2% or remain flat compared to 2023 levels. On a constant currency basis, this translates to a sales range from a 1% decline to a 1% increase.

In the second quarter, McCormick reported a net income of $184.2 million, equating to $0.68 per share. This is an increase from the net income of $152.1 million, or $0.56 per share, reported in the corresponding quarter of the previous year. Excluding special items, adjusted EPS for the quarter was $0.69, up from $0.60 in the prior year. These results exceeded analysts' expectations, which had averaged $0.59 per share according to Thomson Reuters data, typically excluding special items.

Revenue for the quarter decreased to $1.64 billion from $1.66 billion in the previous year. However, this was slightly above the analysts' average estimate of $1.63 billion.