McCormick Posts Better-Than-Expected FQ3 Earnings, Raises Full-Year Earnings Guidance

McCormick & Co MKC reported upbeat earnings for its fiscal third-quarter. The company has also lifted its earnings guidance for the full year. MKC reported its FQ3 profit at $102.4 million, or $0.76 per share, up from $75.1 million, or $0.57 per share, in the year-ago quarter. The company's earnings, after excluding a $0.10 benefit from the reversal of a significant tax accrual, came in at $0.66 per share. MKC reported its net sales at $794.6 million, up from $791.7 million, in the year-ago period. However, analysts expected the company to post its earnings at $0.59 per share on revenue of $809.02 million. McCormick has raised its EPS projections for the full year to $2.67 to $2.71, excluding a one-time tax benefit, from its earlier guidance of $2.49 to $2.54. However, analysts expected earnings at $2.54 per share. Alan D. Wilson, Chairman, President and CEO said, “In the face of a global economy that remains challenging, we are growing sales, improving margins and increasing profit. Recent product introductions like Recipe Inspirations® in the US, Perfect Shake® in the UK and Thai chili sauce in China are driving sales, along with new flavor solutions for industrial customers. Our marketing programs are emphasizing the convenience, value, health and great taste of our leading brands. McCormick employees are improving productivity and reducing costs throughout the business with our Comprehensive Continuous Improvement (CCI) program. CCI-led cost savings are now expected to exceed $45 million in 2010. These savings, together with a more favorable mix of products, increased gross profit margin nearly 2 percentage points in the third quarter. Due in large part to our excellent progress with margin improvement initiatives, we have raised our projected growth rate for 2010 earnings per share.” MKC's shares gained 0.24% to $41.20 in after-hours trading. Read more from Benzinga's Company news. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.