09:06 AM EDT, 10/01/2024 (MT Newswires) -- McCormick ( MKC ) lifted its full-year earnings outlook on Tuesday as the spices and seasonings producer logged better-than-expected fiscal third-quarter results.

The company now anticipates per-share adjusted earnings to come in between $2.85 and $2.90 for fiscal 2024, up from its prior projections of $2.80 to $2.85. The consensus on Capital IQ is for normalized EPS of $2.87. The stock rose 2.4% in premarket activity.

Sales are expected to range from a 1% decline to a 1% increase compared with 2023 with "minimal impact" from currency, according to the company. It previously forecast sales to be flat to down 2% for the fiscal year. The Street is looking for revenue of $6.68 billion.

"We believe we are well positioned with our cost savings initiatives to fuel investments and generate operating margin expansion," Chief Executive Brendan Foley said in a statement. "Our year to date results coupled with our growth plans reinforce our confidence in achieving the mid to high-end of our projected sales growth for 2024."

For the three-month period ended August, McCormick's ( MKC ) adjusted EPS increased to $0.83 from $0.65 last year, topping analysts' $0.67 estimate. Sales remained nearly flat at $1.68 billion, but topped the Street's view for $1.67 billion.

"This quarter we reached a meaningful milestone by delivering total global positive volume growth, reflecting improved trends across both segments, and we expect this momentum to continue into the fourth quarter," according to Foley.

Sales in the consumer segment edged higher to $937.4 million from $937.1 million in the prior-year quarter, amid a 1% volume gain that was offset by a 1% decrease in prices. Volume growth in the Americas and the Europe, Middle East and Africa regions were partially offset by declines in Asia Pacific, mainly due to a "challenging macro environment in China," Foley said.

Flavor solutions revenue fell 1% year over year to $742.4 million. The business recorded "sequential volume improvement" amid strong growth in branded foodservice, Foley said.

Gross profit margin rose 170 basis points year over year to 38.7%, aided in part by the company's cost savings program. Selling, general and administrative expenses decreased to $361.5 million from $371.7 million a year ago.

Price: 84.27, Change: +1.97, Percent Change: +2.39