McCormick & Co. (NYSE:MKC) weighed in on Thursday with a 36% rise in fiscal third-quarter profits and stronger-than-expected non-GAAP results, prompting the spice market to hike its full-year financial guidance.
The Sparks, Md.-based company said it earned $102.4 million, or 76 cents a share, in the quarter ended Aug. 31, compared with a profit of $75.1 million, or 57 cents a share, in the year-earlier results. Excluding one-time items, it earned 66 cents a share, topping the Street’s view of 59 cents.
Revenue inched up 0.4% to $794.6 million, missing forecasts for $809 million. Gross margins came in at 42.1%.
Inspired by the results and recent product introductions, McCormick & Co. upped its full-year EPS view to $2.67 to $2.71. On a non-GAAP basis, it sees EPS growing 9% to 11%, translating to $2.57 to $2.61.
“In the face of a global economy that remains challenging, we are growing sales, improving margins and increasing profit,” CEO Alan Wilson said in a statement. “Due in large part to our excellent progress with margin improvement initiatives, we have raised our projected growth rate for 2010 earnings per share.”
Shares of McCormick & Co. rallied around the results and outlook, rising 3.41% to $42.50 ahead of Thursday’s premarkets. The stock had rallied nearly 14% on the year as of Wednesday’s close.