NYSE$MKC
McCormick & Co Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Reported strong sales and profit growth driven by consumer segment.
McCormick reported an 8% sales increase in the second quarter from the year-ago period. In constant currency total sales grew 10% with significant consumer segment growth partially offset by a substantial sales decline in the flavor solutions segment. Earnings per share was $1.46 in the second quarter as compared to $1.12 in the year-ago period. Adjusted earnings per share rose 27% to $1.47 from $1.16 in the year-ago period.
- Sales rose 8% in the second quarter from the year-ago period.
- Operating income increased 24% to $257 million.
- Earnings per share was $1.46 as compared to $1.12 in the year-ago period.
- Adjusted earnings per share rose 27% to $1.47 from $1.16 in the year-ago period.
Headline financials
Revenue & EPS history
McCormick · Revenue · Quarterly
$1.4B
Revenue by segment
McCormick · $1.4B total across 2 segments · Q2 2020
- Consumer$963M+26.0%68.7%
- Flavor Solutions$439M-18.5%31.3%
Forward guidance
The company believes there will be a shift in demand due to COVID-19 for the balance of the year but cannot predict the level of consumption at home or away from home, or the impact of possible resurgences of the COVID-19 virus. The company is focused on execution and is ready to perform in this dynamic environment as it has thus far. The company reaffirms its long-term financial objectives and capital allocation priorities remain unchanged.
Tailwinds
- Expecting an overall increase in consumer demand driven by increased cooking at home.
- Continues to see elevated demand as the second half of the fiscal year begins.
- Expecting customer demand from packaged food companies to be consistent with levels prior to COVID-19.
- Restaurant and other foodservice customers are beginning to recover.
- Demand from restaurant and other foodservice customers to rebound gradually throughout the second half of the fiscal year.
Headwinds
- Cannot predict the level of consumption at home or away from home.
- Cannot predict the impact of possible resurgences of the COVID-19 virus.
- High degree of uncertainty about the pace and shape of the COVID-19 recovery.
- Not providing new fiscal 2020 guidance at this time.
- Demand from restaurant and other foodservice customers not return to the same level as the year-ago period.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q2 2020
+0.1%
Avg return
Earnings day
+0.7%
Avg return
5 days after
+1.4%
Avg return
30 days after
47%
32 / 68 earnings
Positive
+9.6%
Q1 2023
Best reaction
-12.7%
Q4 2018
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | — | — | — | |
| Q1 2026 | +0.9% | -3.7% | — | |
| Q4 2025 | -7.1% | -4.7% | +2.9% | |
| Q3 2025 | -3.9% | -2.4% | -6.2% | |
| Q2 2025 | -1.7% | -0.8% | -2.5% | |
| Q1 2025 | -0.1% | +1.4% | -6.6% | |
| Q4 2024 | +2.1% | +4.7% | +9.4% | |
| Q3 2024 | -0.3% | -2.1% | -4.9% | |
| Q2 2024 | +4.8% | +3.8% | +12.0% | |
| Q1 2024 | +8.7% | +9.8% | +8.0% | |
| Q4 2023 | +5.0% | +5.3% | +3.5% | |
| Q3 2023 | -8.4% | -13.6% | -13.2% | |
| Q2 2023 | -5.0% | -4.0% | -2.2% | |
| Q1 2023 | +9.6% | +12.4% | +18.0% | |
| Q4 2022 | -4.5% | -3.7% | -3.8% | |
| Q3 2022 | +0.2% | +3.5% | +7.8% | |
| Q2 2022 | -4.1% | -4.8% | +0.6% | |
| Q1 2022 | -0.4% | +4.4% | +6.3% | |
| Q4 2021 | +6.8% | +9.3% | +4.6% | |
| Q3 2021 | -3.6% | -4.3% | -4.1% | |
| Q2 2021 | +0.3% | -0.3% | -4.7% | |
| Q1 2021 | -1.1% | -1.0% | +0.5% | |
| Q4 2020 | -4.8% | -4.9% | -10.4% | |
| Q3 2020 | -0.6% | -1.2% | -5.8% | |
| Q2 2020 | +2.3% | +4.1% | +12.3% | |
| Q1 2020 | -3.2% | +2.6% | +9.6% | |
| Q4 2019 | -3.1% | -5.4% | -13.0% | |
| Q3 2019 | +5.4% | +8.1% | +2.8% | |
| Q2 2019 | +2.9% | +4.9% | +7.9% | |
| Q1 2019 | +2.4% | +4.7% | +4.9% | |
| Q4 2018 | -12.7% | -12.8% | -2.3% | |
| Q3 2018 | +1.4% | +2.7% | +6.5% | |
| Q2 2018 | +9.6% | +8.9% | +11.1% | |
| Q1 2018 | -1.0% | -0.5% | -0.1% | |
| Q4 2017 | +7.4% | +7.9% | +6.1% | |
| Q3 2017 | +6.4% | +1.7% | +3.0% | |
| Q2 2017 | -1.5% | -1.7% | -3.5% | |
| Q1 2017 | -3.3% | -3.8% | -1.3% | |
| Q4 2016 | +1.6% | +1.5% | +5.6% | |
| Q3 2016 | -0.5% | -1.6% | -2.0% | |
| Q2 2016 | +3.1% | +4.2% | -0.4% | |
| Q1 2016 | +2.5% | — | — | |
| Q4 2015 | +7.0% | — | — | |
| Q3 2015 | -3.1% | — | — | |
| Q2 2015 | -1.2% | — | — | |
| Q1 2015 | +3.8% | — | — | |
| Q4 2014 | -0.4% | — | — | |
| Q3 2014 | +4.4% | — | — | |
| Q2 2014 | +0.5% | — | — | |
| Q1 2014 | +5.3% | — | — | |
| Q4 2013 | -7.0% | — | — | |
| Q3 2013 | -3.9% | — | — | |
| Q2 2013 | -2.3% | — | — | |
| Q1 2013 | -1.5% | — | — | |
| Q4 2012 | -7.1% | — | — | |
| Q3 2012 | -1.4% | — | — | |
| Q2 2012 | +2.9% | — | — | |
| Q1 2012 | +2.3% | — | — | |
| Q4 2010 | -0.9% | — | — | |
| Q4 2011 | -0.9% | — | — | |
| Q3 2011 | +1.1% | — | — | |
| Q2 2011 | +0.1% | — | — | |
| Q2 2010 | +0.1% | — | — | |
| Q1 2010 | +0.2% | — | — | |
| Q1 2011 | +0.2% | — | — | |
| Q4 2008 | -0.5% | — | — | |
| Q3 2010 | -1.1% | — | — | |
| Q4 2009 | -1.1% | — | — | |
| Q3 2009 | -1.1% | — | — |
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