After Bland Results, Is McCormick Stock Still a Spicy Pick?
McCormick (NYSE: MKC), a leading purveyor of spices, condiments, and other flavorings, reported earnings this week, and the results are interesting not only for McCormick shareholders, but also for the investing community in general as they might provide some insight into what's to come as earnings season picks up.
In its second quarter of 2022, McCormick felt the impact of the macroeconomic headwinds we've been seeing and hearing about for the past few months. As one would expect, this led to weak results that are atypical of this consistent albeit slow-growing company. So how should investors digest a quarter like this? Taking a long-term mindset, I see it as a bump in the road that's still leading to positive shareholder returns over time.
In short, almost every financial and business metric was weaker than usual. Revenue was down 1% year over year, which is the first time that's happened since the beginning of the pandemic. The gross margin fell to 34% from 39.5% in the year-ago quarter, and earnings per share (EPS) were $0.44, down 35%. McCormick's consumer segment was hit particularly hard, with revenue falling 8% and operating income down 29%.
Source Fool.com
