Spice got a little cheaper
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.