Yahoo Finance McCormick (MKC) Q2 Earnings Coming Up: Factors to Note
McCormick & Company, Incorporated MKC is likely to register top- and bottom-line decline when it reports second-quarter fiscal 2024 earnings on Jun 27. The Zacks Consensus Estimate for revenues is pegged at $1.6 billion, suggesting a decline of almost 2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to 59 cents per share in the past seven days, projecting a 1.7% decline from the figure reported in the year-ago period quarter.
The global leader in flavor has a trailing four-quarter earnings surprise of 5.4%, on average. MKC delivered an earnings surprise of 8.6% in the last reported quarter.
Factors To Note
MKC has been battling soft volume trends as consumer demand remains challenging. Notably, consumers have been exhibiting value-seeking behavior as they continue to feel the pinch of food inflation. Moreover, the company’s decision to discontinue the low-margin business and sell the canning business is likely to have put pressure on fiscal second-quarter volumes.
The company has been grappling with cost inflation, which is putting pressure on the margin performance. The company is also witnessing rising selling and general and administrative expenses. In this regard, elevated brand marketing costs have been hurting. Also, the company’s international presence keeps it exposed to risks of unfavorable currency rates.
That being said, McCormick’s effective pricing strategy and saving efforts keep it well-positioned for growth.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for McCormick this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McCormick carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -2.25%.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Kimberly-Clark Corporation KMB currently has an Earnings ESP of +2.25% and a Zacks Rank #3. The company is likely to register a decline in the top line when it reports second-quarter 2024 numbers. The consensus mark for revenues is pegged at $5.08 billion, which suggests a decline of 1.1% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share of $1.67 suggests a 1.2% increase from the year-ago quarter. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.
Clorox CLX currently has an Earnings ESP of +2.14% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line decrease when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.98 billion, which calls for a decline of 1.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.53 suggests a drop of 8.4% from the year-ago quarter’s levels. However, Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.
Domino's Pizza, Inc. DPZ currently has an Earnings ESP of +2.18% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.66, which suggests 18.8% growth year over year.
The Zacks Consensus Estimate for Domino's Pizza’s quarterly revenues is pegged at $1.1 billion, which indicates a rise of 7.8% from the figure reported in the prior-year quarter. DPZ has a trailing four-quarter earnings surprise of 9.3%, on average.
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Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
