Food flavoring company McCormick (NYSE:MKC) will be announcing earnings results tomorrow before market open. Here’s what to expect.

McCormick beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.68 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.

Is McCormick a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting McCormick’s revenue to grow 1% year on year to $1.77 billion, slowing from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McCormick has missed Wall Street’s revenue estimates four times over the last two years.

Looking at McCormick’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Simply Good Foods reported revenues up 10.6%, falling short of estimates by 1.7%. General Mills traded down 2.9% following the results while Simply Good Foods was also down 6.5%.

Read our full analysis of General Mills’s results here and Simply Good Foods’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the shelf-stable food stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.7% on average over the last month. McCormick is down 4.7% during the same time and is heading into earnings with an average analyst price target of $84.34 (compared to the current share price of $75.89).

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