McCormick Is Still Too Spicy
Last night on "Mad Money," Jim Cramer said spice maker McCormick & Co. (MKC) is a buy. After missing estimates two weeks ago, the shares were mercilessly pounded into the ground as investors ran for cover. The stock is still limping around looking to recover. I looked at the company last September and thought the shares were too spicy. Since then (and after the recent shellacking), the stock is up about $0.29. I'm not so certain there will be a big rebound in the stock any time soon.
On Jan. 24, McCormick's fourth quarter earnings missed the Street estimate by $0.03 and it lowered guidance for 2013. The company posted revenue growth of just 3.2% to $1.15 billion vs. the consensus of $1.17 billion. For 2013, management told investors to expect earnings per share in the $3.15 to $3.23 range vs. the previous estimate of $3.33. The company said first-quarter sales growth would be below the 5% rate investors were modeling, since comparisons with last year's results will be very difficult to beat. The stock sold off on the disappointing news....253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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