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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:
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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.