McCormick shares spike as the spice maker posts surprise Q2 beat
The company also largely reaffirmed its full-year outlook as more Americans cook at home and buy in bulk.
McCormick shares jumped more than 5% Tuesday morning after the spice and condiment giant posted a surprise second-quarter earnings beat and stuck to its full-year outlook.
Earnings per share came in at $0.69, above estimates for $0.65, while revenue landed in line with expectations at $1.6 billion. The company’s core flavor segment, which includes herbs, seasonings, and sauces, accounts for over half its sales.
McCormick said shoppers are adapting to higher costs by cooking more at home (a trend also lauded by Campbell’s in its recent earnings call), buying bigger pack sizes, and getting more out of every grocery trip. Demand for flavor hasn’t wavered, especially as value and wellness continue to drive meal plans.
“As consumer preferences evolve, we continue to execute on our proven strategies that are in alignment with consumer trends,” CEO Brendan M. Foley said in a statement. “For this fiscal year, we are well positioned with our robust plans to mitigate current tariff related costs, fuel growth investments, and expand operating margins.”
McCormick slightly narrowed its full-year earnings forecast to $2.98 to $3.03, but kept its adjusted outlook steady at $3.03 to $3.08. It still expects sales to grow between 0% and 2% this year.
McCormick shares are now positive on the year, up about 1.6%
