McCormick (MKC, $139.00) Down -13% On Lower-than-Expected Earnings. But Reported Strong Year-Over-Year Growth
McCormick & Co. may not have been able to spice things up yet with its recent quarterly report. The producer of condiments and seasonal mixes saw its shares decline nearly -13% on Thursday, after it reported earnings that fell short of analysts’ estimates.
The company posted adjusted earnings of $1.67 per share for the fourth quarter, which was lower than Zacks Consensus Estimate of $1.70 per share. However, the earnings-per-share was still +8% higher compared to the same quarter a year ago.
Net sales of $1.5 billion also could not match up to analysts’ expectations, but experienced a +12% increase from the year-ago period.
For the full-year 2018, adjusted earnings per share rose to $4.97, from $4.26 of the previous year.
For 2019, McCormick expects its adjusted earnings per share to increase in the range of 4%-6% from the preceding year. It projects sales growth of 1%-3% for the year.
MKC in upward trend: price may jump up because it broke its lower Bollinger Band on October 21, 2024
MKC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where MKC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 cases where MKC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MKC advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 27, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MKC as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
MKC moved below its 50-day moving average on October 17, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MKC crossed bearishly below the 50-day moving average on October 15, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MKC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for MKC entered a downward trend on October 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.931) is normal, around the industry mean (6.522). P/E Ratio (29.244) is within average values for comparable stocks, (26.887). Projected Growth (PEG Ratio) (2.651) is also within normal values, averaging (2.471). Dividend Yield (0.021) settles around the average of (0.043) among similar stocks. P/S Ratio (3.085) is also within normal values, averaging (66.610).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MKC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MKC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
a manufacturer of spices, seasoning mixes, condiments and flavorful products
Industry FoodSpecialtyCandy