Street, Mccormack, Hulu discussed on MarketFoolery
We've got another retailer gearing up for the holidays we have. Another tech giant. I'm not sure how to categorize story. We'll get to it soon. Enough. We're going to start with the spice maker though because shares of McCormack actually down a little bit despite the fact that McCormick's third quarter profits in revenue came in higher than expected. They also announced a two-for-one stock split I WANNA, get to the stocks but in a minute, I'm assuming the slight drop one, two percent that we're seeing in the stock is the guidance because McCormack if I understand this correctly, they resumed their fiscal year guidance and it was a little bit lower than wall. Street was expecting. Maybe Based on the numbers I had seen that guidance they resumed was was right in the range that had been. The average expectations that had been on the street for some time now. But yeah, they they had pulled guidance a little while back and felt comfortable and getting back into it. This quarter. I think it's probably a couple of things I mean, let's remember. This is never a cheap looking stock relative to its growth rates in. So right now it's trading at around thirty three, thirty, four times. Full Year estimates you're talking about a company. That's yeah. They're putting up five, six, seven percent topline revenue growth that that doesn't quite a lineup and. I understand why the market pays up forward. It's very high quality business, but it's also stop that is trading at the. Know really attractive valuations. I can understand the tepid reaction but. They're also going to be making some investments here in the coming quarters suspending a little bit more. On, marketing and advertising and incorporating some new enterprise technology into the business that will create margins a little bit in the near term nothing to worry about it. It's all in the name of making the business even better than it is today and I think that you write. This was a really good quarter in a lot of ways. There was a passage on the call that I really summed it up and they said the significant shift to consumers eating more at home is persisting long enough that it has become a habit. So management, there is seeing that. The pandemic economy is obviously changed. Everyone's behavior restaurants have been hit very hard. People are having to cook more at home in. What we're starting to see is that people are doing this more and more in it's becoming something that's a bit more sustainable, and that is obviously very good news for them based on what they sell When you look at the actual growth, I mean they put up nine percent revenue growth this quarter, which is really impressive given their traditional three, four percent in this all organic to in consumer sales in the Americas rose seventeen percent compared to the third quarter a year ago. So a lot of really good numbers. Just, a very reliable steady business. I wouldn't let the market's reaction today. Bother me. Do you have a sense of where they spend their promotional dollars? I'm trying to. Think of any time I've ever encountered a television commercial. Pop up I'm assuming they're spending their. Marketing dollars somewhere I'm just not sure where it is. Yeah. I mean I will say as someone who has a Hulu live streaming platform here at home among other things and so we we can watch them live TV from time to time and I do see a good number of ads on TV from them..