Overview

* McCormick ( MKC ) Q3 net sales rise 3%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q3 beats estimates, reflecting effective cost management

* Co reaffirms 2025 sales growth outlook, updates operating income and EPS due to rising costs

Outlook

* McCormick ( MKC ) reaffirms fiscal 2025 sales growth outlook of 0% to 2%

* Company updates fiscal 2025 adjusted EPS forecast to $3.00-$3.05

* McCormick ( MKC ) expects 2025 adjusted operating income to grow 2% to 4%

* Company anticipates foreign currency to impact 2025 EPS by 2%

Result Drivers

* VOLUME-LED GROWTH - McCormick's ( MKC ) Q3 sales growth was driven by a 2% organic increase, primarily due to higher volume

* COST PRESSURES - Rising commodity costs and tariffs pressured gross margins, partially offset by cost savings initiatives

* SEGMENT PERFORMANCE - Consumer segment sales rose 4% driven by volume and product mix, while Flavor Solutions increased 1% due to pricing

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $1.72 $1.71

bln bln (10

Analysts

)

Q3 Beat $0.85 $0.82

Adjusted (10

EPS Analysts

)

Q3 EPS $0.84

Q3 $294 mln

Adjusted

Operatin

g income

Q3 $289 mln

Operatin

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for McCormick & Company Inc ( MKC ) is $82.50, about 17.2% above its October 6 closing price of $68.29

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)