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Is McCormick Stock Benefiting From 'Seller Exhaustion' After Q3 Earnings? PreMarket Prep Breaks It Down

Stock Markets Oct 07, 2022 18:41
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© Reuters. Is McCormick Stock Benefiting From 'Seller Exhaustion' After Q3 Earnings? PreMarket Prep Breaks It Down
 
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Third-quarter earnings season does not ramp up until next week, with some big banks announcing results.

On Thursday, spice and grocery manufacturer McCormick (NYSE:MKC) & Company, Incorporated (NYSE: MKC) revealed its third-quarter report, and the price action following that announcement makes it the PreMarket Prep Stock Of The Day.

McCormick Has Mind Of Its Own In 2022: After ending 2021 at $96.61, the issue made a new all-time high in March at $107.35 and was able to hold in the triple digits until early-to-mid May.

As late as August, it was able to trade in the lower $90 handle, but weakened to end the month at $84.07.

The issue succumbed to market forces in September, and the company issuing lower third-quarter guidance in early September sent investors to the exit. It found, at least for now, a bottom on Sept. 30 at $71.19 and ended Wednesday’s session just above that level at $73.31.

McCormick's Q3 Miss: Before the open Thursday, the company reported quarterly earnings of 69 cents per share, which missed the analyst consensus estimate of 94 cents by 26.6%.

The company reported quarterly sales of $1.6 billion, which missed the analyst consensus estimate of $1.78 billion by 10.34%.

PreMarket Prep's Take: When the issue was being covered on the show Thursday, it was trading flat on the session ($73.31).

“The reason it is not down more is that it has 'seller exhaustion' — the stock has already been hammered as of late, and just maybe there is none left to sell off the poor report,” said co-host Dennis Dick.

“I would be careful shorting this stock after what Helen Of Troy Ltd. (NASDAQ: HELE) did after its second-quarter beat was accompanied by a guidance cut for the third quarter.”

MKC Price Action: After a higher open Thursday ($74.13 to $73.31), the issue caught a wicked bid and rallied to $77.97, and sharply reversed course. McCormick closed Thursday's session at $72.48 and was trading 2.05% higher at $73.98 in Friday's session.

Watch the PreMarket Prep discussion on McCormick here:

Photo via Shutterstock.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Is McCormick Stock Benefiting From 'Seller Exhaustion' After Q3 Earnings? PreMarket Prep Breaks It Down
 

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