McCormick & Co Inc. (MKC) announced its third quarter results on Tuesday, October 1. The company reported an increase in revenue, causing shares to rise by over 2% following the release.

Revenue came in at $1.68 billion for the third quarter, relatively unchanged from the same quarter last year. This was just above analysts' estimates of $1.67 billion.

“We are pleased with our year to date performance, which was in line with our expectations and reflects the success of our prioritized investments in the areas within our portfolio that we believe will drive the greatest value,” said McCormick & Co Inc. CEO, Brendan M. Foley. “This quarter we reached a meaningful milestone by delivering total global positive volume growth, reflecting improved trends across both segments, and we expect this momentum to continue into the fourth quarter. Overall, we remain confident in the sustained trajectory of our business, and in our ability to deliver on our 2024 outlook and long-term financial objectives.”

For the quarter, the company reported net income of $223.1 million or $0.83 per share. This is up from net income of $170.1 million or $0.63 per share the year prior.

The Hunt Valley-based spice company reported Consumer segment sales increased by 1% compared to the prior year but fully offset by a 1% decrease from pricing. Within the Consumer segment, sales in the Americas declined by less than 1% in the quarter, sales in its Europe, Middle East and Africa segment increased by 3% and sales in the Asia and Pacific region fell by just under 1%. The company’s Flavor Solutions segment saw a year-over-year decline of 1% in sales. The company reaffirmed its fiscal 2024 outlook and expects earnings per share in the range of $2.81 to $2.86 and sales growth ranging between negative 1% to 1%.

McCormick & Co Inc. (MKC) shares ended the week at $80.61, down 3% for the week.

Paychex Quarterly Report

Paychex, Inc., (PAYX) released its first quarter earnings on Tuesday, October 1. The payroll provider met analysts’ estimates, resulting in its shares rising by more than 4% following the release of the report.

For the quarter, the company reported total revenue of $1.32 billion. This was up 3% from $1.29 billion in the same quarter last year and was in line with analysts' expectations.

“We are off to a solid start in fiscal 2025 with 3% growth in total revenue during the first quarter,” said Paychex CEO, John Gibson. “Small and mid-sized businesses remain resilient as the U.S. labor market gradually returns to its pre-pandemic level and wage inflation continues to moderate. We continue to invest in our go to market capabilities and products to drive innovation to meet the realities of the post-pandemic marketplace.”

Paychex posted net income of $427.4 million or $1.18 per adjusted share for the quarter. This was up 2% from net income of $419.2 million or $1.16 per adjusted share this time last year.

The Rochester, New York-based company saw an increased revenue in most service segments. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 7% to $319.3 million for the quarter. Management Solutions revenue rose 1% to $961.7 million for the first quarter, which was attributed to growth in client numbers and higher product penetration in Human Resource and Retirement Services, offset by lower ancillary service revenue.

Paychex, Inc., (PAYX) shares closed at $138.65, up 4% for the week.

Acuity Brands Posts Earnings Reports

Acuity Brands, Inc. (AYI) reported its fourth quarter and full year earnings on Tuesday, October 1. The technology company’s stock gained almost 2% following the release of the report.

The company’s net sales reached $1.03 billion for the fourth quarter, up 2% from $1.01 billion during the same period last year. This was above analysts’ expectations of $1.02 billion for the quarter. Full-year revenue returned at $3.84 billion, a 3% decrease from $3.95 billion in fiscal 2023.

“Our fiscal 2024 fourth quarter performance was strong,” said Acuity Brands, Inc. CEO, Neil Ashe. “We grew net sales in both Lighting and Spaces, delivered margin expansion and increased earnings per share. Fiscal 2024 was a successful year of improved operating performance that delivered increased end-user satisfaction and financial results.”

Acuity Brands reported quarterly net income of $118.9 million or $3.77 per adjusted share. This was an increase from $82.9 million in net income or $2.63 per adjusted share during the same period last year. For the full year, the company reported net income of $422.6 million or $13.44 per diluted share. This was an improvement from net income of $346.0 million or $10.76 per diluted share last year.

The Atlanta, Georgia-based industrial technology manufacturer saw an increase in sales throughout its two main segments. Net sales for Acuity Brands Lighting and Lighting Controls (ABL) increased by 1.1% to $955.0 million in the fourth quarter. Acuity’s Intelligent Spaces Group (ISG) also saw growth in sales with an increase of 16.7% to $83.9 million. For fiscal 2025, the company expects net sales to be in the range of $3.9 billion to $4.1 billion.

Acuity Brands, Inc. (AYI) shares ended the week at $306.83, up 14% for the week.

The Dow started the week of 9/30 at 42,290 and closed at 42,353 on 10/4. The S&P 500 started the week at 5,727 and ended at 5,751. The NASDAQ started the week at 18,070 and finished at 18,138.

U.S. Treasury yields rose throughout the week as markets reacted to the latest economic data for the service industry indicating another month of expansion in September. Yields spiked after the jobs report showed stronger-than-expected employment data.

On Thursday, the Institute for Supply Management (ISM) released its purchasing managers’ index (PMI) for September indicating growth in the service industry. The PMI measures the change in economic activity in the services sector and is used as an indicator of U.S. economic activity. The PMI for September was 54.9%, up from a PMI of 51.5% in August and above analysts’ forecast of 51.8%.

“Pricing of supplies remains an issue with supply chains continuing to stabilize,” said chair of the ISM’s services business survey committee, Steve Miller. “September’s cut to interest rates by the Federal Reserve was welcomed by services businesses, though labor costs and availability continue to be an issue.”

The benchmark 10-year Treasury note yield opened the week of September 30 at 3.75% and traded as high as 3.86% on Thursday. The 30-year Treasury bond opened the week at 4.11% and traded as high as 4.19% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 6,000 to 225,000 for the week ending September 28. Continuing unemployment claims decreased by 1,000 to 1.83 million. On Friday, the Bureau of Labor Statistics released its monthly jobs report for September which showed an increase of 254,000 jobs, significantly higher than economists’ estimates of 150,000.

“For the moment, the labor market looks steady as a rock and the economy appears to have missed falling headlong over the cliff into the depths of recession,” said chief economist at FWDBONDS, Christopher Rupkey. “Fed officials are unlikely to hurry ahead with aggressive interest rate cuts unless the labor market deteriorates further.”

The 10-year Treasury note yield finished the week of 9/30 at 3.96%, while the 30-year Treasury note yield finished the week at 4.25%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, October 3. The survey showed the 30-year and 15-year mortgage rate increase after several weeks of decreases.

This week, the 30-year fixed rate mortgage averaged 6.12%, up from last week’s average of 6.08%. Last year at this time, the 30-year fixed rate mortgage averaged 7.49%.

The 15-year fixed rate mortgage averaged 5.25% this week, up from last week’s 5.16%. During the same week last year, the 15-year fixed rate mortgage averaged 6.78%.

“The decline in mortgage rates has stalled due to a mix of escalating geopolitical tensions and a rebound in short-term rates that indicate the market’s enthusiasm on rate cuts was premature,” said Freddie Mac’s Chief Economist, Sam Khater. “Zooming out to the bigger picture, mortgage rates have declined one and a half percentage points over the last 12 months, home price growth is slowing, inventory is increasing, and incomes continue to rise. As a result, the backdrop for homebuyers this fall is improving and should continue through the rest of the year.”

Based on published national averages, the savings rate was 0.46% as of 9/16. The one-year CD averaged 1.88%.