We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Middleby Corporation (MIDD - Free Report) reported first-quarter 2023 adjusted earnings of $2.19 per share, which surpassed the Zacks Consensus Estimate of $1.93. The bottom line inched up around 3% year over year on higher sales.
Net sales of $1,007.4 million surpassed the Zacks Consensus Estimate of $968 million. The top line inched up 1.3% year over year. Organic revenues in the reported quarter decreased 1.4%. Acquired assets boosted sales by 4%, while movements in foreign currencies had a negative impact of 1.3%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 60.9% of the net sales) were $613.94 million, up 13.7% year over year. Organic sales in the reported quarter increased 11.5%. Buyouts boosted sales by 3.3%, while foreign-currency woes affected sales by 1.2%.
Sales from the Residential Kitchen Equipment Group (representing 21.8% of the reported quarter’s net sales) totaled $219.96 million, down 33.6% year over year. Organic sales in the quarter under review dropped 32.1%. Adverse foreign currency movements had a negative impact of 1.6%.
Sales from the Food Processing Equipment Group (representing 17.2% of the reported net sales) summed $173.50 million, up 40.4% year over year. Organic sales in the quarter jumped 24.3%. Acquisitions boosted sales by 17.3%, while adverse foreign currency movements affected sales by 1.2%.
The Middleby Corporation Price, Consensus and EPS Surprise
In the first quarter, Middleby’s cost of sales decreased 5.3% year over year to $628.66 million. Gross profit augmented 14.6% to $378.74 million. Gross margin increased to 37.6% from 33.2% in the year-ago quarter.
Selling, general and administrative expenses increased 4.5% year over year to $215.41 million. Segment operating income in the first quarter rose 31.4% year over year to $161.02 million. Operating margin increased to 16% from 12.3% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the first quarter, Middleby had cash and cash equivalents of $156.52 million compared with $162 million at the end of December 2022. Long-term debt was $2.69 billion at the end of the first quarter compared with $2.68 billion at 2022-end.
In the first quarter, MIDD generated net cash of $92 million from operating activities against $15.34 million of cash used in operating activities in the year-ago period. Capital expenditure totaled $25.49 million compared with $14.50 in the year-ago period. Free cash flow was $66.52 million in the first quarter, against the free cash outflow of $29.84 million in the year-ago period.
Zacks Rank & Other Key Picks
Middleby carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks within the broader Industrial Products sector are as follows:
Image: Shutterstock
Middleby (MIDD) Q1 Earnings & Revenues Beat, Increase Y/Y
The Middleby Corporation (MIDD - Free Report) reported first-quarter 2023 adjusted earnings of $2.19 per share, which surpassed the Zacks Consensus Estimate of $1.93. The bottom line inched up around 3% year over year on higher sales.
Net sales of $1,007.4 million surpassed the Zacks Consensus Estimate of $968 million. The top line inched up 1.3% year over year. Organic revenues in the reported quarter decreased 1.4%. Acquired assets boosted sales by 4%, while movements in foreign currencies had a negative impact of 1.3%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 60.9% of the net sales) were $613.94 million, up 13.7% year over year. Organic sales in the reported quarter increased 11.5%. Buyouts boosted sales by 3.3%, while foreign-currency woes affected sales by 1.2%.
Sales from the Residential Kitchen Equipment Group (representing 21.8% of the reported quarter’s net sales) totaled $219.96 million, down 33.6% year over year. Organic sales in the quarter under review dropped 32.1%. Adverse foreign currency movements had a negative impact of 1.6%.
Sales from the Food Processing Equipment Group (representing 17.2% of the reported net sales) summed $173.50 million, up 40.4% year over year. Organic sales in the quarter jumped 24.3%. Acquisitions boosted sales by 17.3%, while adverse foreign currency movements affected sales by 1.2%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Margin Profile
In the first quarter, Middleby’s cost of sales decreased 5.3% year over year to $628.66 million. Gross profit augmented 14.6% to $378.74 million. Gross margin increased to 37.6% from 33.2% in the year-ago quarter.
Selling, general and administrative expenses increased 4.5% year over year to $215.41 million. Segment operating income in the first quarter rose 31.4% year over year to $161.02 million. Operating margin increased to 16% from 12.3% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the first quarter, Middleby had cash and cash equivalents of $156.52 million compared with $162 million at the end of December 2022. Long-term debt was $2.69 billion at the end of the first quarter compared with $2.68 billion at 2022-end.
In the first quarter, MIDD generated net cash of $92 million from operating activities against $15.34 million of cash used in operating activities in the year-ago period. Capital expenditure totaled $25.49 million compared with $14.50 in the year-ago period. Free cash flow was $66.52 million in the first quarter, against the free cash outflow of $29.84 million in the year-ago period.
Zacks Rank & Other Key Picks
Middleby carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks within the broader Industrial Products sector are as follows:
Ingersoll Rand (IR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 12.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Ingersoll Rand has an estimated earnings growth rate of 13.1% for the current year. The stock has rallied 11.8% in the year-to-date period.
Allegion (ALLE - Free Report) presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 12.5%, on average.
Allegion has an estimated earnings growth rate of 16.3% for the current year. The stock has gained 8.3% in the year-to-date period.