McCormick Q2 Earnings Coming Up: What Investors Need to Understand

McCormick & Company, Incorporated MKC is likely to register growth in its top line when it reports second-quarter 2025 earnings on June 26. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, implying a 1.2% increase from the prior-year quarter’s reported figure. 

However, McCormick expects a year-over-year bottom-line decline in the fiscal second quarter. The consensus mark for earnings moved down by a penny in the last seven days to 65 cents per share, indicating a decline of 5.8% from the year-ago quarter’s reported figure. MKC has a trailing four-quarter earnings surprise of 9.2%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

McCormick & Company, Incorporated Price and EPS Surprise

 

McCormick & Company, Incorporated price-eps-surprise | McCormick & Company, Incorporated Quote

Things to Know Ahead of MKC’s Q2 Earnings

McCormick’s strategic investments in innovation and distribution expansion are yielding positive results. The company continues to bolster its position across major markets and core categories by focusing on growth levers such as brand marketing, product and packaging innovation, category management and proprietary technology. This innovation-led growth strategy aligns with McCormick’s long-term goal of capturing increased market share, especially in high-growth segments. Apart from this, the company expects its cost-saving initiatives to help fund future investments and drive operating margin expansion.

However, McCormick continues to navigate growing macroeconomic pressures, as rising consumer uncertainty and inflation concerns weigh on sentiment. The prolonged economic challenges have led to increased value-seeking behavior, particularly among lower-income consumers, who are tightening budgets amid worries about job security and rising costs. The company’s foodservice segment continues to navigate a difficult operating environment with weaker volumes from quick-service restaurant customers.

Adding to the pressure, McCormick continues to face cost inflation, which is expected to persist through 2025 and is likely to have affected its performance in the fiscal second quarter. Additionally, selling, general and administrative (SG&A) expenses have continued to rise due to increased investments in technology infrastructure and brand marketing. The ongoing impact of these cost pressures is expected to have weighed on McCormick’s to-be-reported quarter.

Earnings Whispers for MKC Stock

Our proven model does not predict an earnings beat for McCormick this time. 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, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

McCormick currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.19%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Mondelez International, Inc. MDLZ currently has an Earnings ESP of +0.62% and a Zacks Rank #2. The company is likely to register top-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.9 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mondelez’s quarterly earnings per share (EPS) is pegged at 68 cents, indicating a 20.9% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.

The Hershey Company HSY presently has an Earnings ESP of +0.83% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The consensus mark for Hershey’s quarterly revenues is pegged at $2.5 billion, which indicates an increase of 20% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s quarterly EPS is pegged at 99 cents, indicating a 22.1% decline from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 0.6%, on average.

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +48.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 EPS is pegged at 5 cents, which implies a 92.2% decrease year over year.

The consensus estimate for The Estee Lauder Companies’ quarterly revenues is pegged at $3.38 billion, which indicates a 12.7% decrease from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 107.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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