Shares of McCormick & Company (NYSE: MKC) surged 5.65% in pre-market trading on Thursday following the release of its second-quarter earnings report. The spice and flavoring company exceeded analysts' expectations, demonstrating resilience in a challenging economic environment.
McCormick reported adjusted earnings per share of $0.69, surpassing the consensus estimate of $0.66. The company's quarterly sales reached $1.659 billion, slightly above the expected $1.658 billion and representing a 0.97% increase from the same period last year. The adjusted operating income for Q2 was $259 million, significantly higher than the estimated $247.9 million.
Despite facing headwinds from tariffs, McCormick reaffirmed its fiscal year 2025 outlook. The company plans to offset tariff-related costs through various initiatives, including sourcing plans, cost-saving measures, and revenue growth management. McCormick also anticipates strong cash flow driven by profit and working capital initiatives, with intentions to return a significant portion to shareholders through dividends. The positive results and confident outlook have likely fueled investor optimism, contributing to the stock's pre-market rally.
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