McCormick & Co.'s stock surges after it reports record earnings

Shares of McCormick & Co. surged 5 percent in Thursday trading after the the global flavorings firm based reported record earnings for the fourth quarter of its 2017 fiscal year.

The Sparks-based spice company announced Thursday that it earned $175.7 million in the three months ended Nov. 30, up from $157.4 million in same period of 2016. Per-share earnings climbed to $1.32 from $1.24.


McCormick’s quarterly revenue surged 21.5 percent to nearly $1.5 billion.

The company’s stock price closed at $105.09, up $4.99 a share for the day.


Lawrence E. Kurzius, McCormick’s chairman, president and CEO, attributed the results to its “strong base business” as well as its acquisitions of Reckitt Benckiser Foods, the maker of French’s Mustard and Frank’s Red Hot sauce; Italian flavor maker Enrico Giotti; and packaged herb seller Gourmet Garden.

“Our broad global flavor portfolio continues to drive growth and differentiate McCormick,” Kurzius said in a statement. “In 2017, we delivered another year of record financial results with strong core business performance and the incremental impact of acquisitions.”

For the full year, McCormick reported a profit of $477.4 million, or $3.72 a share, on $4.8 billion in sales, all up from the prior year.

“It was a solid quarter, in our view, with the integration of RB Foods running ahead of expectations and healthy sales growth in both its consumer and industrial segments,” wrote Brittany Weissman, a consumer equity analyst with Edward Jones, in a research note.

“We were pleased to see McCormick's underlying business show strength during the quarter, especially in a challenging environment where other packaged food companies have struggled,” she wrote.