McCormick & Co. (NYSE: MKC) reported its second-quarter financial results before the markets opened on Tuesday. The food company said that it had $1.53 in earnings per share (EPS) and $1.43 billion in revenue, while consensus estimates had called for $1.52 in EPS and revenue of $1.39 billion. The same period of last year reportedly had EPS of $1.46 and $1.33 billion in revenue.
During the quarter, total sales rose roughly 8%, or 9% in constant currency.
Consumer segment sales increased 15% to $910.9 million, with minimal impact from currency, driven by an increase in demand resulting from consumers cooking more at home. Consumer segment net sales in the Americas rose 17%, EMEA sales increased 23% and Asia/Pacific sales declined 9%.
Flavor solutions segment sales declined 3% to $519.4 million year over year. Flavor solutions net sales decreased 5% in the Americas, decreased 1% in EMEA regions and decreased 5% in Asia/Pacific regions.
In constant currency, flavor solutions operating income decreased 22%. The decline was driven by lower sales, unfavorable product mix, unfavorable manufacturing costs, COVID-19 related costs and higher incentive compensation with a partial offset from CCI-led cost savings.
One major thing the company announced this quarter was that the board of directors approved a 2-for-1 stock split that would take place on November 20.
Looking ahead, the company resumed its guidance for the fiscal 2020 full year. It expects to see strong business performance driven by expected sales growth at the upper end of 4% to 5%, which in constant currency is 5% to 6%. Consensus estimates call for $5.76 in EPS and $5.53 billion in revenue for the year.
McCormick stock traded down 5.5% to $184.45 Tuesday morning, in a 52-week range of $112.23 to $211.07. The consensus price target is $169.50.
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