Spices maker McCormick's Q4 adjusted earnings miss expectations

Overview

• Spices maker reported Q4 sales rose 3%, slightly beating analyst expectations

• Adjusted EPS for Q4 was $0.86, missing analyst expectations

• Company acquired controlling interest in McCormick de Mexico

Outlook

• McCormick expects 2026 net sales growth of 13% to 17%

• Company projects adjusted EPS for 2026 between $3.05 and $3.13

• McCormick anticipates 2026 adjusted operating income growth of 16% to 20%

Result Drivers

• CONSUMER SEGMENT - Organic sales increased 3% in Q4, driven by pricing actions and volume and product mix

• FLAVOR SOLUTIONS - Organic sales increased 1% in Q4, with price increases offset by volume and product mix

• COST SAVINGS - Decreased SG&A expenses and CCI program led to higher adjusted operating income

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold."

• Wall Street's median 12-month price target for McCormick & Company Inc is $77.00, about 15.7% above its January 21 closing price of $66.56

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nPnbSsmJ3a

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