McCormick reports in line results: Cramer sees ‘some value’ in its stock

October 03, 2023 08:41 AM PDT | By Invezz

McCormick reports in line results: Cramer sees ‘some value’ in its stock — Image source: Invezz

Jim Cramer reacts to raised guidance

The food company that’s behind notable brands like French’s or Frank’s RedHot said its performance was weighed in the recent quarter due to a weaker-than-expected economic recovery in China.

Pulling out of Russia and divesting Kitchen Basics also contributed to weakness in Q3, as per its press release.

Still, McCormick raised its profit guidance for the full year on Tuesday. It now forecasts per-share earnings to fall between $2.62 and $2.67 in its fiscal 2023. According to Jim Cramer:

They would have raised guidance substantially if it weren’t for China. McCormick is a very good company. What’s not being taken into account is that they are doing a good job.

McCormick Q3 financial highlights

Earned $170.1 million versus the year-ago $222.9 million
Per-share earnings also decline from 82 cents to 63 cents
Adjusted EPS printed at 65 cents as per the press release
Sales jumped 5.6% year-over-year to $1.685 billion
Consensus was 65 cents a share on $1.697 billion revenue

Both consumer and flavour solutions segments of McCormick & Co Inc weren’t exciting in terms of volume in the third quarter but price increases helped offset the weakness. On CNBC’s “Squawk on the Street”, famed investor Jim Cramer also said today:

I want you to watch this because … the fact that this stock is back to where it was before the COVID tells you that there might be some value here.

The post McCormick reports in line results: Cramer sees ‘some value’ in its stock appeared first on Invezz.

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