McCormick and Co. Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

S&P 500 (NYSE:SPY) component McCormick & Company, Inc. (NYSE:MKC) reported its results for the second quarter. McCormick & Co., Inc. manufactures flavor products including spices, herbs, extracts, seasonings and flavorings and other food products.

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McCormick & Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for McCormick & Company, Inc. rose to $73.6 million (55 cents per share) vs. $66.2 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 11.2% from the year earlier quarter.

Revenue: Rose 10.7% to $883.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MKC beat the mean analyst estimate of 54 cents per share. Estimates ranged from 52 cents per share to 56 cents per share.

Quoting Management: Alan D. Wilson, Chairman, President and CEO, commented, “We were pleased to report double-digit increases in both sales and profit this quarter. We achieved a strong performance in both our consumer and industrial segments through new products, increased distribution and effective brand marketing. Our profit performance demonstrates our ability to offset steep cost increases with a combination of pricing actions and cost savings from our Comprehensive Continuous Improvement program. CCI is our on-going initiative to improve productivity and reduce costs throughout our organization. McCormick employees are highly engaged in this effort and we now expect to deliver at least $45 million of CCI cost savings in 2011.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 13.1% and in the fourth quarter of the last fiscal year, the figure rose 15%.

Gross margin shrank 1.2 percentage points to 39.7%. The contraction appeared to be driven by increased costs, which rose 13% from the year earlier quarter while revenue rose 10.7%.

Revenue has risen the past four quarters. Revenue increased 2.4% to $782.8 million in the first quarter. The figure rose 5.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 0.4% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: TreeHouse Foods Inc. (NYSE:THS), Campbell Soup Company (NYSE:CPB), H.J. Heinz Company (NYSE:HNZ), ConAgra Foods, Inc. (NYSE:CAG), Kellog (NYSE:F), Kraft (NYSE:KFT), General Mills, Inc. (NYSE:GIS), Ralcorp Holdings, Inc. (NYSE:RAH), The Hain Celestial Group, Inc. (NASDAQ:HAIN), The J.M. Smucker Company (NYSE:SJM), and Bridgford Foods Corp. (NASDAQ:BRID).

Stock Performance: Shares of MKC are unchanged from the previous close of $51.

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(Source: Xignite Financials)