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Mettler-Toledo (MTD) to Post Q3 Earnings: What's in Store?

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Mettler-Toledo International, Inc. (MTD - Free Report) is scheduled to report third-quarter 2020 results on Nov 5. In the last reported quarter, the company delivered an earnings surprise of 23.9%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 6.7%.

Third-Quarter Expectations

Mettler-Toledo expects sales to decline between 1% and 3% on a year-over-year basis in local currency. The Zacks Consensus Estimate for sales is pegged at $747.86 million.

Adjusted earnings are anticipated in the range of $5.80-$6 per share. The Zacks Consensus Estimate for earnings is pegged at $6.02 per share.

Performance in the Last Reported Quarter

Mettler-Toledo reported second-quarter 2020 adjusted earnings of $5.29 per share, which beat the Zacks Consensus Estimate of $4.27.

Revenues of $690.7 million also surpassed the Zacks Consensus Estimate by 6.7%.

Let’s see how things have shaped up for this announcement.

Key Factors to Consider

The company’s strong product portfolio, which includes robust analytical instruments, balances and auto-chem, is expected to have driven sales in the to-be-reported quarter.

Further, strength across Laboratory and Industrial segments is anticipated to have contributed to its third-quarter performance.

The company’s strong momentum across pharmaceutical and life sciences markets is expected to have driven its performance in the quarter under review. Further, investments in field force, Spinnaker sales and marketing programs may get reflected in the results for the quarter to be reported. Further, robust automated chemistry solutions are expected to have aided Mettler-Toledo’s momentum across the drug process development field in the quarter under review.

The Zacks Consensus Estimate for the Laboratory segment sales is pegged at $392 million.

Mettler-Toledo’s solid momentum across core industrial business is likely to have driven the Industrial Instruments’ segment sales in the third quarter amid sluggishness in the product inspection business.

The Zacks Consensus Estimate for the Industrial segment sales is pegged at $317 million.

Nonetheless, the company’s cost-containment measures and declining discretionary spending are expected to have aided the segment’s performance in the to-be-reported quarter.

However, softness in Mettler-Toledo’s retail segment — which comprises the food retail business — might have acted as a headwind in the third quarter. The Zacks Consensus Estimate for Retail segment sales is pegged at $42.22 million.

What Our Model Says

Our proven model does not predict an earnings beat for Mettler-Toledo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mettler-Toledo has an Earnings ESP of -0.27% and a Zacks Rank #2, at present.

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat in the quarter to be reported:

MercadoLibre, Inc. (MELI - Free Report) has an Earnings ESP of +269.05% and carries a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.

Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.

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