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Home / Business / Why McCormick, CalAmp and Madison Square Garden jumped today – The Motley Fool

Why McCormick, CalAmp and Madison Square Garden jumped today – The Motley Fool



With equities weakening between positive and negative early on, equities today ended the year in solid blacks as investors sought to break tensions and tariff issues between the US and its largest trading partners.

But individual companies were able to grow significantly more. Read on to find out why McCormick (NYSE: MKC) CalAmp (NASDAQ: CAMP) and Madison Square Garden (NYSE: MSG ) surpassed the market today.

  A man in a suit pointing to a chart indicating stock market successes

McCormick's piquant quarter

McCormick shares climbed 8.4% after the spice maker posted stronger than expected quarterly results.

McCormick's revenue grew 1

9.1% (or 16% in constant currencies) to $ 1.33 billion year-on-year, with 13% of this growth due to last year's acquisition of Frank and the French. The bottom line is a 24% increase in adjusted earnings per share to $ 1.02. On average, analysts expect only adjusted earnings of $ 0.93 per share on revenue of $ 1.32 billion.

CEO Lawrence Kurzius attributed "the successful implementation of our strategies" to the strength of the company, with strong demonstrations from consumer and flavor solutions during the quarter.

In addition, McCormick reiterated its full-year forecast for 2018. Revenues are expected to increase by 13% to 15%, and adjusted earnings per share are expected to be between $ 4.85 and $ 4.95, or $ 4.26 a year 2017 increase by 14% to 16%.

In the end, it is obvious that this report has left investors hungry for more, and the stock surprisingly hit a 52-week high in response.

CalAmp connects with a quarterly beat

CalAmp shares rose 6.5% after the Machine-to-Machine (M2M) communications specialist had impressively announced its own results for the first quarter of 2019.

Quarterly sales rose YoY by 7.7% to $ 94.9 million. Adjusted earnings per share increased slightly year-on-year to $ 10.5 million, or $ 0.29 per share. This growth may not sound particularly exciting, but most investors have sought only $ 0.28 per share in revenue of $ 93 million.

In addition, CalAmp's sales growth was broadly based, including a 6.1% increase over the telematics core segment to $ 76.4 million and a 15.2% increase in software and subscription services with higher margins to 18 , 5 million dollars.

For the current quarter, CalAmp expects revenues of $ 93 million to $ 98 million, or a year-on-year increase of 6.3%, with adjusted earnings per share of $ 0.25 to $ 0.31. For comparison, consensus models demanded about the same revenue, but with a profit near the top of the CalAmp forecasting range. However, given the relative outperformance at the start of the fiscal year and the still-strong share price losses after a significant decline in April, the market was more than willing to overlook CalAmp's light earnings outlook.

Madison Square Garden maintains spin-off

Finally, Madison Square Garden's stake increased 13.9% after the live sports and entertainment company confirmed that it was considering a potential spin-off of certain assets.

The Company's Board of Directors has engaged management to investigate a potential spin-off to create a new, separately traded corporation from its sports businesses, including the New York Knicks NBA franchise and its development team, the Westchester Knicks; the New York Rangers NHL franchise and its development team, the Hartford Wolf Pack; and the New York Liberty WNBA sports franchise (though the company is also exploring a potential sale of the latter). The spin-off would also include the Knicks Gaming NBA 2K e-sports franchise, a controlling stake in e-sports organization Counter Logic Gaming, and a training center in Greenburgh, New York.

"The proposed separation of the sports and entertainment businesses would allow shareholders to more clearly assess the company's assets and future potential," Madison Square Garden said, "while both companies can pursue their own business strategy and capital allocation." [19659002TobeclearthereisnoguaranteethatMadisonSquareGardenwillcontinuewiththeplanButifthemanagementdecidestoproceedthecompanyhasconfirmedthatitwouldbeatax-freetransactionforallcurrentshareholders


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