McCormick Tops Profit Forecasts, Misses on Sales

by Christopher Freeburn | September 27, 2012 10:03 am

McCormick Tops Profit Forecasts, Misses on Sales

McCormick & Company (NYSE:MKC[1]) announced on Thursday that it earned $104.4 million during its third quarter[2], up from $92 million in the same time last year.

EPS came in at 78 cents, up from 69 cents in 2011, and topping Wall Street, which was looking for 76 cents a share, Reuters noted.

The spice maker recorded sales of $977.7 million, up 6% from last year. But that missed the $989.6 million that analysts had predicted.

Investors weren’t impressed. McCormick shares slid almost 3% in Thursday morning trading.

The company slightly increased its earnings guidance for the full year. It now expects profits of between $3.03 and $3.08 a share in 2012. That’s up from earlier estimates of between $3.01 and $3.06 a share.

During the third quarter, McCormick saw Asia-Pacific region sales soar 67% over last year. The sales jump was attributed to its recent acquisition of India’s Kohinoor Foods. Kohinoor sales comprised more than half of the overall sales rise in the region.

Endnotes:
  1. MKC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MKC
  2. during its third quarter: http://af.reuters.com/article/commoditiesNews/idAFL4E8KR3O220120927

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