09:20 AM EDT, 03/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

MKC reported decent Q1 FY 25 (Nov.) results with revenue of $1.61B (+0.2% Y/Y) in line with our estimate but $9M short of consensus, while adjusted EPS of $0.60 (-5% Y/Y) missed our $0.63 estimate and the $0.64 consensus. This miss was due to higher SG&A expenses due to a shift in timing in stock-based comp, along with higher brand marketing and technology expenses. Gross margin of 37.6% was in line with consensus and 10 bps higher than our estimate. Organic sales grew 2.0%, driven by continued strong volume/mix growth of 2.2%. Unlike most packaged food companies, MKC does not seem to be having a problem with growing volumes. Pricing declined 0.2%, driven by price gap adjustments implemented in Q2 FY 24. MKC will lap these pricing headwinds starting next quarter, which sets the company up for stronger organic growth throughout the remainder of the year. FY 25 guidance was reiterated. Notably, MKC expects to offset costs related to U.S. tariff imports on China with cost savings and targeted price adjustments.