McCormick & Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component McCormick & Company, Inc. (NYSE:MKC) will unveil its latest earnings on Wednesday, September 28, 2011. McCormick & Co., Inc. manufactures flavor products including spices, herbs, extracts, seasonings and flavorings and other food products.

McCormick & Company, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 65 cents per share, a decline of 1.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down, but has risen from 64 cents during the last month. For the year, analysts are projecting net income of $2.79 per share, a rise of 5.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 55 cents per share against a mean estimate of net income of 54 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $871.6 million in revenue this quarter, a rise of 9.7% from the year ago quarter. Analysts are forecasting total revenue of $3.63 billion for the year, a rise of 8.7% from last year’s revenue of $3.34 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 11.2% while it rose 13.1% in the first quarter and 15% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.7% to $883.7 million in second quarter. The figure rose 2.4% in the first quarter from the year earlier, climbed 5.9% in the fourth quarter of the last fiscal year from the year-ago quarter and 0.4% in the third quarter of the last fiscal year.

Competitors to Watch: TreeHouse Foods Inc. (NYSE:THS), Campbell Soup Company (NYSE:CPB), H.J. Heinz Company (NYSE:HNZ), ConAgra Foods, Inc. (NYSE:CAG), Vitamin Spice (VTMS), 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 Price Performance: During June 28, 2011 to September 22, 2011, the stock price had fallen $4.84 (-9.6%) from $50.49 to $45.65. The stock price saw one of its best stretches over the last year between January 7, 2011 and January 18, 2011 when shares rose for seven-straight days, rising 2.7% (+$1.19) over that span. It saw one of its worst periods between December 30, 2010 and January 7, 2011 when shares fell for seven-straight days, falling 3.2% (-$1.49) over that span. Shares are down 35 cents (-0.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.