McCormick & Company, Incorporated (NYSE:MKC) shares fell nearly 6% on Tuesday after posting stronger-than-expected quarterly results, as investors appeared cautious about the company’s newly announced $44.8 billion merger with Unilever PLC’s (NYSE:UL) food business.
The deal, which involves a $15.7 billion cash payout, appears to have sparked immediate concerns over the company’s future debt load and equity dilution.
Details
The company reported first-quarter adjusted earnings per share of 66 cents, beating the analyst consensus estimate of 60 cents. Quarterly sales of $1.874 billion outpaced the Street view of $1.787 billion.
Net sales increased 17% in the first quarter compared to the year-ago period and included a 3% favorable impact from currency.
“First quarter total volumes were in line with our expectations, and we anticipate sequential improvement with growth building throughout the year, as we benefit from brand investments, increased innovation in both segments, …
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