Shares of McCormick & Company surged over 5% to $77.68 in Thursday’s session after the spice maker reported better-than-expected second-quarter earnings and outlined plans to manage potential tariff-related costs.
The company posted adjusted earnings per share (EPS) of $0.69, surpassing analysts’ expectations of $0.66. Revenue rose 1% year-over-year to $1.66 billion, in line with market estimates. Growth was driven by a 1.3% increase in volume and mix, with notable gains of 3.6% in the Asia-Pacific region, 3.5% in the Americas, and 2.2% in Europe, the Middle East, and Africa.
CEO Brendan Foley stated that McCormick remains “well positioned with robust plans to mitigate current tariff-related costs,” adding that the company will continue to fuel growth investments and expand operating margins.
McCormick also reaffirmed its full-year outlook, expecting adjusted EPS between $3.03 and $3.08, with revenue forecasted to remain flat or increase up to 2%. The company said it was prepared to navigate the impact of a 10% U.S. tariff on imports, an incremental 30% tariff on Chinese imports, and reciprocal tariffs from other countries.
At 10:57 AM EDT, McCormick shares were up 5.49%, marking one of the stronger stock moves in the consumer staples sector for the day.
