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Sergey Savastiouk's Avatar
published in Blogs
Jan 24, 2019

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.

 

Related Ticker: MKC

MKC's RSI Indicator peaks and leaves overbought zone

The 10-day RSI Oscillator for MKC moved out of overbought territory on March 04, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 instances where the indicator moved out of the overbought zone. In of the 37 cases the stock moved lower in the days that followed. This puts the odds of a move down at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The Moving Average Convergence Divergence Histogram (MACD) for MKC turned negative on March 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 35 similar instances when the indicator turned negative. In of the 35 cases the stock turned lower in the days that followed. This puts the odds of success at .

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 .

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on March 27, 2025. You may want to consider a long position or call options on MKC as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 326 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 275 cases where MKC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

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 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 (6.512). P/E Ratio (29.244) is within average values for comparable stocks, (27.022). 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 (67.421).

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 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 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 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 80, placing this stock better than average.

Notable companies

The most notable companies in this group are Mondelez International (NASDAQ:MDLZ), Kraft Heinz Company (The) (NASDAQ:KHC), General Mills (NYSE:GIS), The Campbell's Company (NASDAQ:CPB), Beyond Meat (NASDAQ:BYND).

Industry description

A specialty/candy manufacturer specializes in one or more of the following: chocolate, candies, pasta, condiments, seasonings, among other items. Hershey Company, McCormick & Company and J.M. Smucker Company are some of the major firms in this segment. Demand for this industry’s products comes from both institutions/restaurants as well as households.

Market Cap

The average market capitalization across the Food: Specialty/Candy Industry is 9.28B. The market cap for tickers in the group ranges from 6.25K to 327.81B. NSRGY holds the highest valuation in this group at 327.81B. The lowest valued company is OGGFF at 6.25K.

High and low price notable news

The average weekly price growth across all stocks in the Food: Specialty/Candy Industry was -0%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was 0%. CELV experienced the highest price growth at 40%, while AMNC experienced the biggest fall at -33%.

Volume

The average weekly volume growth across all stocks in the Food: Specialty/Candy Industry was -2%. For the same stocks of the Industry, the average monthly volume growth was -34% and the average quarterly volume growth was 20%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 50
P/E Growth Rating: 57
Price Growth Rating: 57
SMR Rating: 72
Profit Risk Rating: 80
Seasonality Score: 8 (-100 ... +100)
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General Information

a manufacturer of spices, seasoning mixes, condiments and flavorful products

Industry FoodSpecialtyCandy

Profile
Fundamentals
Details
Industry
Food Specialty Or Candy
Address
24 Schilling Road
Phone
+1 410 771-7301
Employees
13800
Web
https://www.mccormickcorporation.com