rd80 (99.10)

Spice got a little cheaper

September 28, 2012 – Comments (1) | RELATED TICKERS: MKC

McCormick (MKC) reported earnings earlier this week and the market wasn't to happy.  The stock was down on Thursday - an up day - after reporting.  It did recover a bit today.  I read through the report and took a stab at a SWOT style review. 

After backing out one-time stuff, earnings were in-line with expectations and up nicely year-over-year.  The company's cost savings program is expected to save $50 million this year - an increase from original expectaions.  Sales were up nicely in constant currencies; there were some hits on exchage rates but with the Fed printing, that's likely to reverse at some point in the future.

In short, I didn't find a good reason for Thursday's drop on earnings.  The stock trades at about 21 times trailing earnings, a premium to the broad market and pretty much in line with its peer group.

I own MKC and would like to see it get a little cheaper so I can add some more on sale.

Fool on!

Russ