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Mettler-Toledo (MTD) Q3 Earnings Top Estimates, Sales Rise Y/Y
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Mettler-Toledo International, Inc. (MTD - Free Report) reported third-quarter 2020 adjusted earnings of $7.02 per share, which beat the Zacks Consensus Estimate by16.6%. The bottom line also improved 22% on a year-over-year basis and 32.7%, sequentially.
Net sales of $807.4 million were up 7% on reported basis and 6% on currency neutral basis from the respective year-ago quarter’s levels. Further, the top line rose 16.9% from the prior quarter. Also, the same surpassed the Zacks Consensus Estimate of $747.9 million.
Solid momentum across Laboratory and Food Retail segments during the reported quarter drove the the topline. Further, a strong performance delivered by the company across all geographies, especially in China, remained a major positive.
However, headwinds related to the coronanvirus persistently posed challenges to the company during the reported quarter. Moreover, uncertainties due to the ongoing pandemic are likely to linger in the near term, which is a concern.
Nevertheless, the company’s portfolio strength, cost-cutting efforts, robust sales, marketing strategies, and margin and productivity initiatives are expected to aid its near-term performance.
The stock has returned 39.1% on a year-to-date basis, outperforming the industry’s rally of 16.5%.
Top Line in Detail
By Segments: The company reports under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 53%, 40% and 7% of the net sales in the thirdquarter, respectively. Further, Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 9%, 1% and 5% each in the quarter under review.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World. All these regions contributed 38%, 29% and 33% to the net sales in the third quarter, respectively. Further, sales in these regions went up 3%, 4% and 10% each on a year-over-year basis.
Operating Results
Gross margin was 58.2%, expanding 50 bps year over year.
Research & development (R&D) expenses were $34.7 million, down3.8% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 1.1% year over year to $204.9 million.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
As a percentage of sales, R&D expenses contracted 50 bps year over year to 4.3%. Further, SG&A expenses contracted 150 bps year over year to 25.4%.
Adjusted operating margin was 28.5%, which expanded 250 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2020, the company’s cash and cash equivalent balance was $153.7 million, up from $127.3 million on Jun 30, 2020.
Long-term debt was $1.2 billion at the end of the third quarter, increasing from $1.1 billion at the end of second quarter.
Mettler-Toledo generated $225.1 million of cash from operating activities in the reported quarter, up from $183.2 million in the previousquarter. Free cash flow was $211.7 million during the reported quarter.
Guidance
For fourth-quarter 2020, Mettler-Toledo anticipates sales to decline between 4% and 5% on a year-over-year basis in local currency. The Zacks Consensus Estimate for sales is pegged at $872.55 million.
Adjusted December-quarter earnings are anticipated in the range of $8.60-$8.70 per share, implying an 11-12% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share.
For the full year, the company anticipates sales to grow 1%, suggesting an upside in local currency from the year-earlier reported number. The Zacks Consensus Estimate for sales is pegged at $2.96 billion.
Adjusted 2020 earnings are anticipated in the range of $24.87-$24.97 per share. The Zacks Consensus Estimate for the same is pegged at $23.25 per share.
Covetrus is set to report Nov 10, while Himax and NVIDIA are scheduled to report earnings on Nov 12 and Nov 18, respectively.
The long-term earnings growth rate for NVIDIA and Covetrus is currently pegged at 20.1% and 31.6%, respectively. Meanwhile, Himax’s current-year earnings of 13 cents per share, indicate year over year growth of 285.7%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Mettler-Toledo (MTD) Q3 Earnings Top Estimates, Sales Rise Y/Y
Mettler-Toledo International, Inc. (MTD - Free Report) reported third-quarter 2020 adjusted earnings of $7.02 per share, which beat the Zacks Consensus Estimate by16.6%. The bottom line also improved 22% on a year-over-year basis and 32.7%, sequentially.
Net sales of $807.4 million were up 7% on reported basis and 6% on currency neutral basis from the respective year-ago quarter’s levels. Further, the top line rose 16.9% from the prior quarter. Also, the same surpassed the Zacks Consensus Estimate of $747.9 million.
Solid momentum across Laboratory and Food Retail segments during the reported quarter drove the the topline. Further, a strong performance delivered by the company across all geographies, especially in China, remained a major positive.
However, headwinds related to the coronanvirus persistently posed challenges to the company during the reported quarter. Moreover, uncertainties due to the ongoing pandemic are likely to linger in the near term, which is a concern.
Nevertheless, the company’s portfolio strength, cost-cutting efforts, robust sales, marketing strategies, and margin and productivity initiatives are expected to aid its near-term performance.
The stock has returned 39.1% on a year-to-date basis, outperforming the industry’s rally of 16.5%.
Top Line in Detail
By Segments: The company reports under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 53%, 40% and 7% of the net sales in the thirdquarter, respectively. Further, Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 9%, 1% and 5% each in the quarter under review.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World. All these regions contributed 38%, 29% and 33% to the net sales in the third quarter, respectively. Further, sales in these regions went up 3%, 4% and 10% each on a year-over-year basis.
Operating Results
Gross margin was 58.2%, expanding 50 bps year over year.
Research & development (R&D) expenses were $34.7 million, down3.8% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 1.1% year over year to $204.9 million.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
MettlerToledo International, Inc. price-consensus-eps-surprise-chart | MettlerToledo International, Inc. Quote
As a percentage of sales, R&D expenses contracted 50 bps year over year to 4.3%. Further, SG&A expenses contracted 150 bps year over year to 25.4%.
Adjusted operating margin was 28.5%, which expanded 250 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2020, the company’s cash and cash equivalent balance was $153.7 million, up from $127.3 million on Jun 30, 2020.
Long-term debt was $1.2 billion at the end of the third quarter, increasing from $1.1 billion at the end of second quarter.
Mettler-Toledo generated $225.1 million of cash from operating activities in the reported quarter, up from $183.2 million in the previousquarter. Free cash flow was $211.7 million during the reported quarter.
Guidance
For fourth-quarter 2020, Mettler-Toledo anticipates sales to decline between 4% and 5% on a year-over-year basis in local currency. The Zacks Consensus Estimate for sales is pegged at $872.55 million.
Adjusted December-quarter earnings are anticipated in the range of $8.60-$8.70 per share, implying an 11-12% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share.
For the full year, the company anticipates sales to grow 1%, suggesting an upside in local currency from the year-earlier reported number. The Zacks Consensus Estimate for sales is pegged at $2.96 billion.
Adjusted 2020 earnings are anticipated in the range of $24.87-$24.97 per share. The Zacks Consensus Estimate for the same is pegged at $23.25 per share.
Zacks Rank & Other Stocks to Consider
Mettler-Toledo currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader sector are Himax Technologies (HIMX - Free Report) , NVIDIA (NVDA - Free Report) and Covetrus , all carrying the same Zacks Rank as Mettler-Toledo at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covetrus is set to report Nov 10, while Himax and NVIDIA are scheduled to report earnings on Nov 12 and Nov 18, respectively.
The long-term earnings growth rate for NVIDIA and Covetrus is currently pegged at 20.1% and 31.6%, respectively. Meanwhile, Himax’s current-year earnings of 13 cents per share, indicate year over year growth of 285.7%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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