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McCormick Q3 EPS beats Street, raises FY'19 adjusted EPS outlook

McCormick & Company Inc. on Oct. 1 raised its EPS outlook for fiscal 2019, while narrowing its projected growth ranges for sales, operating income and EPS, as the company reported results for the third quarter ended Aug. 31.

The spices and condiments maker now expects adjusted EPS for the full year to be in the range of $5.30 to $5.35 per share, compared to the previous guidance of $5.20 to $5.30.

The new outlook range excludes an estimated 10 cents impact of special charges. The increase also reflects the 20% reduction in the company's fiscal 2019 projected adjusted effective tax rate.

Meanwhile, the Maryland-based company continues to expect fiscal 2019 sales growth of 1% to 2% year over year.

For the third quarter, McCormick posted an adjusted EPS of $1.46, up 14% from $1.28 during the prior-year period, exceeding the S&P Global Market Intelligence consensus mean estimate for normalized EPS of $1.29.

Adjusted net income grew 15.6% year over year to $196.5 million, while net sales during the quarter stood at $1.33 billion, versus $1.32 billion in 2018.

"Our third-quarter growth in the consumer segment accelerated versus our first half and was driven by our Americas and Asia Pacific regions," McCormick Chairman, President and CEO Lawrence Kurzius said.

The company's operating income came in at $254 million in the quarter, up from $230 million in the year-ago period.

The growth was upheld by higher sales, cost savings and favorable product mix, partially offset by business transformation expenses and higher brand marketing, the company said.