McCormick Set to Release Q1 Earnings: Should You Expect a Beat?

McCormick & Company, Incorporated (MKC Quick QuoteMKC – Free Report) is likely to register growth in its top and bottom lines when it reports first-quarter 2025 earnings on March 25. The Zacks Consensus Estimate for revenues is pegged at almost $1.6 billion, implying a 0.6% increase from the prior-year quarter’s reported figure. Although the consensus mark for earnings has moved down by 4.5% in the last seven days to 64 cents per share, the projection indicates growth of 1.6% from the year-ago quarter’s reported figure. MKC has a trailing four-quarter earnings surprise of 12.9%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Consider About McCormick’s Upcoming Results

McCormick continues to thrive, driven by strong growth in volume and product mix. The company is strengthening its presence across key markets and core categories by leveraging strategic growth initiatives, including brand marketing, innovative product and packaging solutions, category management, and proprietary technology. In addition, improvement in consumer demand from China is contributing to positive momentum. McCormick is also reaping the benefits of its cost-saving initiatives, which are fueling growth investments and enhancing operating margins. The continuation of these positive trends is likely to have contributed to the company’s to-be-reported quarter.

Despite strong growth drivers, McCormick faces challenges from inflationary pressures. In addition, increased investments in brand marketing are impacting SG&A expenses, putting pressure on operating leverage. The continuation of such trends poses a risk to the company’s first-quarter performance.

Earnings Whispers for MKC Stock

Our proven model predicts an earnings beat for McCormick this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

McCormick currently carries a Zacks Rank #3 and has an Earnings ESP of +1.95%.

More Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.

BJ’s Wholesale Club (BJ Quick QuoteBJ – Free Report) has an Earnings ESP of +1.13% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fiscal first-quarter earnings per share is pegged at 90 cents, which implies a 5.9% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Wholesale Club’s top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $5.19 billion, which indicates a rise of 5.3% from the prior-year quarter’s actual. BJ delivered a trailing four-quarter earnings surprise of 12%, on average.

RH (RH Quick QuoteRH – Free Report) currently has an Earnings ESP of +2.15% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly earnings per share is pegged at $1.90, up 163.9% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average.

The consensus estimate for RH’s quarterly revenues is pegged at $826.6 million, which implies an increase of almost 12% from the prior-year quarter.

Philip Morris International (PM Quick QuotePM – Free Report) currently has an Earnings ESP of +0.50% and a Zacks Rank of 3. PM is anticipated to register growth in its top and bottom lines when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $8.9 billion, indicating growth of 1.5% from the figure reported in the year-ago quarter.

The consensus estimate for Philip Morris’ earnings has remained unchanged in the past 30 days at $1.61 per share. The consensus estimate suggests 7.3% growth from the year-ago quarter’s reported figure. PM has delivered an earnings beat of 4%, on average, in the trailing four quarters.