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Mettler-Toledo International, Inc. (MTD - Free Report) reported fourth-quarter 2021 adjusted earnings of $10.53 per share, which beat the Zacks Consensus Estimate by 4.6%. The bottom line also improved 14% on a year-over-year basis.
Net sales of $1.04 billion were up 11% on a reported basis, as well as on a currency-neutral basis, from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.02 billion.
Solid momentum across the Laboratory and Industrial segments in the reported quarter drove top-line growth. The strong performance delivered by the company across all geographies remained a major positive.
However, the company witnessed sluggishness in its Food Retail segment.
Headwinds related to the pandemic remain concerning for the company in the days ahead. However, portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategies are expected to remain tailwinds.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
By Segments: The company reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 58%, 38% and 4% of net sales in the fourth quarter, respectively. The Laboratory and Industrial segments witnessed year-over-year growth of 15% and 11%, respectively, in the quarter under review.
The Food Retail business was down 20% on a year-over-year basis.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World, contributing 38%, 29% and 33% to net sales in the fourth quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the World went up 16%, 4% and 14%, respectively, on a year-over-year basis.
Operating Results
The gross margin was 58.5%, contracting 110 basis points (bps) year over year.
Research & development (R&D) expenses were $45.6 million, up 14.4% from the year-ago quarter’s level. Selling, general & administrative (SG&A) expenses increased 7.1% year over year to $242.4 million.
As a percentage of sales, R&D expenses expanded 10 bps year over year to 4.4%. SG&A expenses contracted 70 bps year over year to 23.4%.
The adjusted operating margin was 30.8%, which contracted 40 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the company’s cash and cash equivalent balance was $98.6 million, down from $183.7 million as of Sep 30, 2021.
Long-term debt was $1.58 billion at the end of the fourth quarter, decreasing from $1.64 billion at the end of the third quarter.
Mettler-Toledo generated $241.1 million in cash from operating activities in the reported quarter, down from $263.3 million in the previous quarter. Free cash flow was $206.6 million in the reported quarter.
Guidance
For first-quarter 2022, Mettler-Toledo projects year-over-year sales growth of 10% in local currency. The Zacks Consensus Estimate for sales is pegged at $834.6 million.
Adjusted first-quarter earnings are anticipated to be $7.25-$7.35 per share, implying an 11-12% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.26 per share.
For 2022, the company anticipates year-over-year sales growth of 7% in local currency. The Zacks Consensus Estimate for the same is pegged at $3.9 billion.
Mettler-Toledo expects adjusted 2022 earnings of $38.15-$38.50, reflecting growth of 12-13%. The Zacks Consensus Estimate for the same is pegged at $37.77 per share.
Zacks Rank & Other Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #2 (Buy).
Image: Bigstock
Mettler-Toledo (MTD) Q4 Earnings & Sales Beat, Increase Y/Y
Mettler-Toledo International, Inc. (MTD - Free Report) reported fourth-quarter 2021 adjusted earnings of $10.53 per share, which beat the Zacks Consensus Estimate by 4.6%. The bottom line also improved 14% on a year-over-year basis.
Net sales of $1.04 billion were up 11% on a reported basis, as well as on a currency-neutral basis, from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.02 billion.
Solid momentum across the Laboratory and Industrial segments in the reported quarter drove top-line growth. The strong performance delivered by the company across all geographies remained a major positive.
However, the company witnessed sluggishness in its Food Retail segment.
Headwinds related to the pandemic remain concerning for the company in the days ahead. However, portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategies are expected to remain tailwinds.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
MettlerToledo International, Inc. price-consensus-eps-surprise-chart | MettlerToledo International, Inc. Quote
Top Line in Detail
By Segments: The company reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 58%, 38% and 4% of net sales in the fourth quarter, respectively. The Laboratory and Industrial segments witnessed year-over-year growth of 15% and 11%, respectively, in the quarter under review.
The Food Retail business was down 20% on a year-over-year basis.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World, contributing 38%, 29% and 33% to net sales in the fourth quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the World went up 16%, 4% and 14%, respectively, on a year-over-year basis.
Operating Results
The gross margin was 58.5%, contracting 110 basis points (bps) year over year.
Research & development (R&D) expenses were $45.6 million, up 14.4% from the year-ago quarter’s level. Selling, general & administrative (SG&A) expenses increased 7.1% year over year to $242.4 million.
As a percentage of sales, R&D expenses expanded 10 bps year over year to 4.4%. SG&A expenses contracted 70 bps year over year to 23.4%.
The adjusted operating margin was 30.8%, which contracted 40 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the company’s cash and cash equivalent balance was $98.6 million, down from $183.7 million as of Sep 30, 2021.
Long-term debt was $1.58 billion at the end of the fourth quarter, decreasing from $1.64 billion at the end of the third quarter.
Mettler-Toledo generated $241.1 million in cash from operating activities in the reported quarter, down from $263.3 million in the previous quarter. Free cash flow was $206.6 million in the reported quarter.
Guidance
For first-quarter 2022, Mettler-Toledo projects year-over-year sales growth of 10% in local currency. The Zacks Consensus Estimate for sales is pegged at $834.6 million.
Adjusted first-quarter earnings are anticipated to be $7.25-$7.35 per share, implying an 11-12% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.26 per share.
For 2022, the company anticipates year-over-year sales growth of 7% in local currency. The Zacks Consensus Estimate for the same is pegged at $3.9 billion.
Mettler-Toledo expects adjusted 2022 earnings of $38.15-$38.50, reflecting growth of 12-13%. The Zacks Consensus Estimate for the same is pegged at $37.77 per share.
Zacks Rank & Other Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Bruker (BRKR - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bruker has gained 18.1% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit has gained 34.7% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler has gained 25.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.