UPDATE: McCormick beats third-quarter estimates, resumes guidance and unveils 2-for-1 stock split

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McCormick & Co. Inc. posted better-than-expected earnings for its fiscal third quarter, resumed guidance and announced a 2-for-1 stock split, saying it is still benefiting from dining at home during the pandemic. The Hunt Valley, Md.-based maker of spices and flavorings said it had net income of $206.1 million, or $1.53 a share, in the quarter to Aug. 31, up from $191.9 million, or $1.43 a share, in the year-earlier period. Adjusted per-share earnings came to $1.53, a penny ahead of the $1.52 FactSet consensus. Sales rose to $1.430 billion from $1.329 billion, also ahead of the $1.396 billion FactSet consensus. “Our results for the third quarter continued to be significantly impacted by the sustained consumer preference for cooking more at home,” Chief Executive Lawrence Kurzius said in a statement. “..Our updated 2020 outlook reflects the strength of these year-to-date results and our confidence in the sustainability of higher at home consumption trends,” he said. The company is now expecting fiscal 2020 sales to grow at the upper end of its up 4% to 5% range. The company expects adjusted per-share earnings to range from $5.64 to $5.72, compared with a current FactSet consensus of $7.75. Its board has approved a 2-for-1 stock split to be conducted on Nov. 20. Shares were up 1.5% premarket and have gained 15% in the year to date, while the S&P 500 has gained 3.7%.
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