NYSE$MKC

McCormick & Co Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

McCormick's third quarter performance was reported with sales increase and reaffirmation of 2022 outlook.

McCormick & Company reported a 3% increase in sales for the third quarter compared to the previous year. In constant currency, sales increased by 6%, driven by growth in both the Consumer and Flavor Solutions segments. The company reaffirmed its financial outlook for fiscal year 2022.

  • Sales increased 3% in the third quarter, and 6% in constant currency.
  • Operating income was $235 million, compared to $265 million in the year-ago period.
  • Earnings per share was $0.82, compared to $0.79 in the year-ago period.
  • McCormick reaffirmed its sales, operating income, and earnings per share outlook for fiscal year 2022.

Headline financials

Total Revenue

$1.6B

Previous: $1.55B+3.0%
EPS (adj)

$0.69

Previous: $0.80-13.8%
Capital Expenditures

-$167M

Previous: -$190M+12.2%
Free Cash Flow

$56.1M

Previous: $22.5M+149.3%
Net Income

$223M

Previous: $212M+4.9%
Operating Income

$235M

Previous: $265M-11.3%
Gross Profit

$567M

Previous: $600M-5.5%
Cash & Equivalents

$344M

Previous: $313M+10.0%
Total Assets

$12.9B

Previous: $12.9B+0.4%
Stock-Based Comp

$12.2M

Previous: $11.6M+5.2%

Revenue & EPS history

McCormick · Revenue · Quarterly

$1.6B

Q3 2022+3%vs Q3 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

McCormick · $1.6B total across 2 segments · Q3 2022

  • Consumer
    $928M+0.7%
  • Flavor Solutions
    $668M+6.4%

Forward guidance

For fiscal year 2022, McCormick reaffirmed its financial outlook which was previously issued with the Company’s preliminary third quarter 2022 results on September 7, 2022. McCormick expects 2022 sales to range from comparable to 2021 to an increase of 2%, which in constant currency is sales growth of 3% to 5%.

Tailwinds

  • Sales growth to be driven by pricing actions.
  • Cost savings are expected to offset inflationary pressures over time.
  • Continued growth through the strength of its brands.
  • Brand marketing investments.
  • New products, category management, and differentiated customer engagement

Headwinds

  • Foreign currency rates in 2022 to unfavorably impact net sales by 3%.
  • Foreign currency rates in 2022 to unfavorably impact adjusted operating income and adjusted earnings per share by 2%.
  • Operating income in 2022 is expected to decline 10% to 8% from $1.02 billion in 2021.
  • Adjusted operating income to decline 13% to 11%, or 11% to 9% in constant currency.
  • Adjusted earnings per share to be in the range of $2.63 to $2.68 as compared to adjusted earnings per share of $3.05 in 2021.

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 Q3 2022

Historical avgQ3 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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