McCormick Raises FY23 Adj. EPS Guidance

(RTTNews) - McCormick & Company, Incorporated (MKC) reaffirmed its fiscal 2023 sales outlook and raised its operating income and adjusted earnings per share outlook, driven by the strength of its year-to-date performance. The company expects strong underlying business performance in 2023 driven by sales growth.

McCormick projects 2023 earnings per share to be in the range of $2.44 to $2.49. Excluding special charges, the company projects 2023 adjusted earnings per share to be in the range of $2.60 to $2.65, as compared to previously reported guidance of $2.56 to $2.61. Excluding the impact of special charges and integration expenses, adjusted operating income is expected to increase 10% to 12%. The company previously projected adjusted operating income to increase 9% to 11%. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.63. Analysts' estimates typically exclude special items.

In 2023, McCormick expects to grow sales by 5% to 7%. The company expects sales growth to be driven primarily by pricing actions.

For fiscal 2023, the company expects strong cash flow driven by profit and working capital initiatives and expects returning a significant portion of cash flow to shareholders through dividends.

Second quarter earnings per share was $0.56 compared to $0.44 in the year-ago period. Excluding impacts, adjusted earnings per share was $0.60 in the second quarter compared to $0.48. The company said this 25% increase was driven by higher adjusted operating income partially offset by higher interest expense and a higher adjusted effective tax rate. McCormick reported 8% sales growth in the second quarter from the year-ago period, or 10% in constant currency to $1.66 billion.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.