McCormick's (MKC) Buyouts & Savings To Boost Q4 Earnings
Zacks Investment Research | Jan 16, 2019 09:19PM ET
McCormick & Company, Incorporated (NYSE:MKC) is slated to release fourth-quarter fiscal 2018 results on Jan 24, before market opens. This Midland-based company’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.2%. In the preceding quarter, the bottom line was in line with the consensus mark. Further, the company has been witnessing year-over-year growth in the top and the bottom line for more than a year. That said, lets take a look at what’s in store for the company this time around.
Efforts to Boost Sales
This global leader in flavors and spices is strategically expanding portfolio through acquisitions. In fact, the acquisition of the food division of RB Foods has added iconic brands such as Frank's RedHot Hot Sauce and French's Mustard to McCormick’s portfolio, which have boosted sales. Gains from the RB buyout is expected to bolster performance in the impending quarter as well.
In the past, the company made significant acquisitions, including Italy-based Enrico Giotti SpA and Australia-based Botanical Food Company. These takeovers have augmented McCormick’s portfolio strength. Further, the company focuses on innovation to stay competitive as well as tap the evolving demand for new flavors, spices and herbs. We note that newly-added products boosted sales in the consumer and flavor solutions segments during the third quarter of fiscal 2018. Going ahead, the company is on track with product launches under the Frank’s banner. Health and wellness also continue to drive the innovation agenda.
McCormick & Company, Incorporated Price, Consensus and EPS Surprise
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