McCormick & Co. (MKC) Releases Earnings Results, Beats Expectations By $0.09 EPS
McCormick & Co. (NYSE:MKC) issued its quarterly earnings results on Friday. The company reported $1.03 EPS for the quarter, beating the Zacks’ consensus estimate of $0.94 by $0.09. The company earned $1.09 billion during the quarter, compared to the consensus estimate of $1.09 billion. McCormick & Co. had a return on equity of 26.08% and a net margin of 9.96%. McCormick & Co.’s revenue was up 2.9% on a year-over-year basis. During the same period last year, the business posted $0.85 earnings per share. McCormick & Co. updated its FY16 guidance to $3.75-3.79 EPS.
McCormick & Co. (NYSE:MKC) opened at 99.92 on Monday. The company has a market capitalization of $12.65 billion, a price-to-earnings ratio of 29.63 and a beta of 0.48. The stock has a 50 day moving average price of $99.50 and a 200-day moving average price of $99.20. McCormick & Co. has a 12-month low of $78.45 and a 12-month high of $107.84.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 25th. Stockholders of record on Tuesday, October 11th will be issued a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.72%. The ex-dividend date is Thursday, October 6th. McCormick & Co.’s payout ratio is currently 50.89%.
A number of analysts recently commented on MKC shares. Zacks Investment Research downgraded McCormick & Co. from a “buy” rating to a “hold” rating in a research report on Tuesday, June 21st. Citigroup Inc. raised McCormick & Co. from a “sell” rating to a “neutral” rating and increased their price target for the company from $85.00 to $102.00 in a research report on Thursday, June 23rd. Deutsche Bank AG reaffirmed a “hold” rating and set a $110.00 price target (up from $105.00) on shares of McCormick & Co. in a research report on Friday, June 24th. Finally, Sanford C. Bernstein downgraded McCormick & Co. from an “outperform” rating to a “market perform” rating and decreased their price target for the company from $113.00 to $104.00 in a research report on Friday, September 16th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, five have assigned a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $97.11.
In other news, Director Patricia A. Little sold 3,750 shares of the business’s stock in a transaction that occurred on Tuesday, July 5th. The stock was sold at an average price of $107.22, for a total value of $402,075.00. Following the sale, the director now directly owns 13,227 shares of the company’s stock, valued at approximately $1,418,198.94. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Gordon Mckenzie Stetz, Jr. sold 38,900 shares of the business’s stock in a transaction that occurred on Wednesday, July 13th. The stock was sold at an average price of $105.17, for a total value of $4,091,113.00. Following the completion of the sale, the chief financial officer now directly owns 94,012 shares in the company, valued at $9,887,242.04. The disclosure for this sale can be found here. 13.70% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the company. Sei Investments Co. boosted its position in McCormick & Co. by 48.4% in the second quarter. Sei Investments Co. now owns 62,639 shares of the company’s stock valued at $6,682,000 after buying an additional 20,440 shares during the period. Public Sector Pension Investment Board boosted its position in McCormick & Co. by 17.1% in the second quarter. Public Sector Pension Investment Board now owns 21,923 shares of the company’s stock valued at $2,339,000 after buying an additional 3,200 shares during the period. National Pension Service boosted its position in McCormick & Co. by 5.4% in the second quarter. National Pension Service now owns 86,352 shares of the company’s stock valued at $9,211,000 after buying an additional 4,386 shares during the period. AXA boosted its position in McCormick & Co. by 5.7% in the second quarter. AXA now owns 103,000 shares of the company’s stock valued at $10,987,000 after buying an additional 5,600 shares during the period. Finally, Alliancebernstein L.P. boosted its position in McCormick & Co. by 1.6% in the second quarter. Alliancebernstein L.P. now owns 214,495 shares of the company’s stock valued at $22,880,000 after buying an additional 3,416 shares during the period. 72.48% of the stock is currently owned by hedge funds and other institutional investors.
McCormick & Co. Company Profile
McCormick & Company, Incorporated manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company operates in two segments: consumer and industrial. Its brands in the Americas include McCormick, Lawry’s, Stubb’s, Club House, Zatarain’s, Thai Kitchen and Simply Asia.
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