McCormick & Company (NYSE: MKC) saw its shares plummet 5.4% in pre-market trading on Tuesday following the release of its fiscal 2025 first-quarter earnings report. The spice and seasoning maker's results fell short of analyst expectations, raising concerns about the company's profitability in a challenging economic environment.
The company reported adjusted earnings per share of $0.60, missing the consensus estimate of $0.64 and representing a 4.8% decline from the same period last year. Revenue for the quarter came in at $1.605 billion, slightly below the expected $1.611 billion but up 0.2% year-over-year. McCormick's operating income decreased to $225 million from $234 million in the prior year, reflecting increased selling, general, and administrative expenses.
Despite the disappointing results, McCormick maintained its full-year 2025 outlook, expecting net sales growth of 0% to 2% and adjusted earnings per share between $3.03 and $3.08. The company cited plans to offset costs related to U.S. import tariffs on China and continued focus on its Comprehensive Continuous Improvement (CCI) program to drive margin expansion. However, investors seem concerned about the company's ability to navigate the uncertain consumer and macroeconomic environment, leading to the sharp pre-market decline in McCormick's stock price.
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