McCormick (MKC) reported earnings on Tue 28 March 2017 (b/o)

** charts after earnings **

  

McCormick beats by $0.02, reports revs in-line; gues Q2 EPS light; reaffirms FY17 guidance :

• Reports Q1 (Feb) earnings of $0.76 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.74; revenues rose 1.3% year/year to $1.04 bln vs the $1.05 bln Capital IQ Consensus. McCormick increased gross profit margin to 39.6% from 39.3% in the first quarter of 2016.
• Sees Q2 adj. EPS comparable to $0.75 (last year) vs. $0.82 consensus.
• Co reaffirms guidance for FY17, sees EPS of $4.05-4.13, excluding non-recurring items, vs. $4.08 Capital IQ Consensus Estimate; sees FY17 revs of 3-5% growth to $4.54-4.63 bln vs. $4.56 bln Capital IQ Consensus Estimate.
• Guidance Details: The company expects to drive sales with brand marketing, new products, expanded distribution and the incremental sales impact of acquisitions completed in fiscal year 2016 and from Giotti, acquired in December 2016. Sales are also expected to be driven by pricing actions that are intended to offset an anticipated mid-single digit increase in material costs. Operating income in 2017 is expected to grow 9% to 11% from $641 million of operating income in 2016. The company has organization and streamlining actions underway and has increased its 2017 projection of related special charges to approximately $11 million from $4 million.