WASHINGTON (dpa-AFX) - McCormick & Co., Inc. (MKC), a manufacturer of spices, seasoning mixes, condiments and other flavorful products, Friday said it is raising fiscal 2016 projection for earnings per share and continues to expect solid sales growth, citing trading performance and growth momentum.
For the year, the company now expects earnings per share in a range of $3.68 to $3.72, compared to $3.11 per share in 2015. Excluding the impact of special charges, the projected range for adjusted earnings per share in 2016 is $3.75 to $3.79, compared to the previous guidance of a $3.68 to $3.75 range.
This latest projection is an increase of 8% to 9% from adjusted earnings per share of $3.48 in 2015.
On average, 10 analysts polled by Thomson Reuters expect earnings of $3.75 per share for the quarter. Analysts' estimates typically exclude special items.
For the fiscal year, the company now expects to grow sales approximately 3%, which is at the upper end of its previous range. Excluding the estimated impact of unfavorable currency rates, the projected growth rate is approximately 6%.
In its third quarter, net income was $127.7 million, higher than $97.6 million a year ago. Earnings per share increased to $1.00 from $0.76 in 2015. Adjusted net income was $131.1 million, compared to $109.7 million. Adjusted earnings per share rose 21% to $1.03 from $0.85 a year ago. Analysts were looking for earnings of $0.94 per share for the quarter.
Sales rose 3% in the third quarter to $1.09 billion from prior year's $1.06 billion. Analysts expected revenues of $1.09 billion for the quarter. In constant currency, the company grew sales 6%, with strong results in both the consumer and industrial segments.
Lawrence Kurzius, President and CEO, stated, 'Consumer demand for healthy and high quality flavors continues to grow in markets around the world. In both our consumer and industrial segments, we are meeting this demand with a broad portfolio of on-trend products in our base business, innovative new products and through acquisitions.'
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