McCormick 2025 Q2 Earnings Net Income Declines 5%
Generado por agente de IAAinvest Earnings Report Digest
viernes, 27 de junio de 2025, 11:15 am ET1 min de lectura
MKC--
McCormick (MKC) reported its fiscal 2025 Q2 earnings on Jun 26th, 2025. The total revenue of McCormickMKC-- increased by 1.0% to $1.66 billion in 2025 Q2, up from $1.64 billion in 2024 Q2. McCormick's EPS declined 5.8% to $0.65 in 2025 Q2 from $0.69 in 2024 Q2. Analysts had anticipated a modest growth in revenue, which McCormick achieved, but the declining EPS may reflect challenges in cost management. McCormick reaffirmed its fiscal 2025 guidance, maintaining confidence in achieving its projected goals despite currency headwinds and tariff impacts.
Revenue
McCormick's revenue grew to $1.66 billion in Q2 2025, marking a 1.0% increase from the previous year's $1.64 billion. The Consumer segment contributed $930.60 million, reflecting robust demand, while the Flavor Solutions segment added $728.90 million, illustrating a steady performance in both sectors.
Earnings/Net Income
McCormick's EPS decreased to $0.65 in 2025 Q2, down from $0.69 in 2024 Q2, and net income fell to $175 million from $184.20 million. These results indicate a challenging quarter for profitability.
Price Action
The stock price of McCormick has edged up 0.74% during the latest trading day, climbed 5.97% during the most recent full trading week, and jumped 9.08% month-to-date.
Post-Earnings Price Action Review
The strategy of buying MKCMKC-- when its revenues beat expectations and holding for 30 days resulted in no return, with both the strategy and benchmark returns at 0.00% and 93.10%, respectively. This suggests that the strategy failed to generate additional gains during the holding period. The Sharpe ratio was 0.00%, and the maximum drawdown was also 0.00%, indicating no risk-adjusted returns and an inability to mitigate potential losses, highlighting the strategy's ineffectiveness in capitalizing on McCormick's revenue beats.
CEO Commentary
Brendan M. Foley, President, CEO & Chairman, expressed satisfaction with the company's Q2 performance, emphasizing continued investment in brand strength, distribution expansion, and operational efficiency. He highlighted McCormick's ability to adapt to economic pressures while maintaining growth and innovation.
Guidance
McCormick expects organic net sales growth between 1% and 3%, primarily driven by the consumer segment. Adjusted earnings per share are projected to range from $3.03 to $3.08, considering currency headwinds and tax rate increases. The company anticipates stable gross margins and operating income growth of 4% to 6% in constant currency.
Additional News
In recent announcements, McCormick declared a $0.45 quarterly dividend on June 24, 2025, continuing its long-standing commitment to shareholder returns. Additionally, the company revealed that Kasey Jenkins plans to retire, marking a significant change in its leadership team. McCormick also participated in Deutsche Bank's Annual dbAccess Global Consumer Conference on May 13, 2025, showcasing its strategic direction and market positioning to investors and industry peers. These events underscore McCormick's ongoing efforts to maintain investor confidence and adapt to market dynamics.
Revenue
McCormick's revenue grew to $1.66 billion in Q2 2025, marking a 1.0% increase from the previous year's $1.64 billion. The Consumer segment contributed $930.60 million, reflecting robust demand, while the Flavor Solutions segment added $728.90 million, illustrating a steady performance in both sectors.
Earnings/Net Income
McCormick's EPS decreased to $0.65 in 2025 Q2, down from $0.69 in 2024 Q2, and net income fell to $175 million from $184.20 million. These results indicate a challenging quarter for profitability.
Price Action
The stock price of McCormick has edged up 0.74% during the latest trading day, climbed 5.97% during the most recent full trading week, and jumped 9.08% month-to-date.
Post-Earnings Price Action Review
The strategy of buying MKCMKC-- when its revenues beat expectations and holding for 30 days resulted in no return, with both the strategy and benchmark returns at 0.00% and 93.10%, respectively. This suggests that the strategy failed to generate additional gains during the holding period. The Sharpe ratio was 0.00%, and the maximum drawdown was also 0.00%, indicating no risk-adjusted returns and an inability to mitigate potential losses, highlighting the strategy's ineffectiveness in capitalizing on McCormick's revenue beats.
CEO Commentary
Brendan M. Foley, President, CEO & Chairman, expressed satisfaction with the company's Q2 performance, emphasizing continued investment in brand strength, distribution expansion, and operational efficiency. He highlighted McCormick's ability to adapt to economic pressures while maintaining growth and innovation.
Guidance
McCormick expects organic net sales growth between 1% and 3%, primarily driven by the consumer segment. Adjusted earnings per share are projected to range from $3.03 to $3.08, considering currency headwinds and tax rate increases. The company anticipates stable gross margins and operating income growth of 4% to 6% in constant currency.
Additional News
In recent announcements, McCormick declared a $0.45 quarterly dividend on June 24, 2025, continuing its long-standing commitment to shareholder returns. Additionally, the company revealed that Kasey Jenkins plans to retire, marking a significant change in its leadership team. McCormick also participated in Deutsche Bank's Annual dbAccess Global Consumer Conference on May 13, 2025, showcasing its strategic direction and market positioning to investors and industry peers. These events underscore McCormick's ongoing efforts to maintain investor confidence and adapt to market dynamics.
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