09:02 AM EDT, 10/07/2025 (MT Newswires) -- McCormick ( MKC ) lowered its full-year earnings outlook on Tuesday amid rising commodity costs and incremental tariffs, even though the spices and seasonings producer reported fiscal third-quarter results above market estimates.

The company now anticipates adjusted earnings to come in between $3 and $3.05 per share for fiscal 2025, down from its previous projections of $3.03 to $3.08. The current consensus on FactSet is for non-GAAP EPS of $3.04. The stock slipped 1.6% in premarket activity.

"Amid rising inflation from higher commodity costs and tariffs, we continue to invest in our growth plans, supported by our cost savings initiatives, which strengthen our resilience and differentiated fundamentals," Chief Executive Brendan Foley said in a statement. "Our year-to-date performance combined with our growth plans reinforce our confidence in achieving our updated outlook for 2025."

McCormick ( MKC ) continues to expect sales to be in a range of flat to up 2% for the ongoing fiscal year. The Street is looking for $6.82 billion. The guidance reflects the company's expectations for volume-led growth and gradual improvement in the consumer market in China.

Foreign currency is forecast to negatively impact sales by 1% and adjusted EPS by 2%, according to the company.

For the quarter ended Aug. 31, McCormick's ( MKC ) adjusted EPS rose to $0.85 from $0.83 the year before, defying the average analyst estimate on FactSet for a decrease to $0.82. Sales improved 2.7% to $1.72 billion, just ahead of the Street's view for $1.71 billion.

On an organic basis, sales inclined 2%, buoyed by volume gains of more than 1% and price contribution of 1%.

Sales in the consumer segment increased 4% to $973 million, amid double-digit growth in Europe, the Middle East and Africa. Flavor solutions revenue ticked up 1% to $752 million. Organically, consumer sales advanced 3%, while flavor moved 1% higher.

"As a result of the dynamic global trade environment, our gross margin was further pressured by rising costs; however, we continued to drive operating profit growth through the effective execution of our cost savings initiatives," according to Foley.

Gross profit margin fell by 130 basis points year over year to 37.4%, amid higher commodity costs, tariffs and expenses to support increased capacity for future growth, the company said. Selling, general and administrative expenses decreased to $352.5 million from $361.5 million in the prior-year quarter.

"We remain disciplined on actions within our control and agile in adapting to external dynamics, positioning McCormick ( MKC ) for sustained long-term growth," Foley said.