Why Did McCormick Stock Fall 16% in October?
Shares of McCormick Company (NYSE: MKC) dropped 15.5% last month, according to S&P Global Market Intelligence. The global spice and flavoring business reported quarterly earnings that were roughly in line with Wall Street's forecasts. Still, investors were disappointed by the company's commentary on demand in China, outlook, and profit margin forecasts.
McCormick delivered 6% annual sales growth last quarter, along with a 5% expansion in adjusted operating profit. Earnings per share (EPS) didn't reflect that growth, however, as it dropped from $0.69 to $0.65 after adjusting for special non-recurring items. Higher interest expenses drove EPS lower. Higher interest rates increased McCormick's borrowing costs despite the company's outstanding debt balance dropping.
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Source Fool.com
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