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What's in the Offing for Mettler-Toledo's (MTD) Q2 Earnings?

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Mettler-Toledo International, Inc. (MTD - Free Report) is scheduled to report its second-quarter 2024 results on Aug 1.

For the second quarter, MTD expects sales to decline 4% in local currency from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for the same is pegged at $923.89 million, indicating a fall of 5.9% from the year-ago period’s reported figure.

Adjusted second-quarter earnings are anticipated to be $8.90-$9.05 per share, implying an 11-13% fall from the year-ago quarter’s reported number. The consensus mark for the same is projected at $9.00 per share, suggesting an 11.7% decline from the prior-year quarter’s reading. The estimate has remained unchanged over the past 30 days.

We note that MTD’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters but missed the same once, the surprise being 2.92%, on average.

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

Key Factors to Consider

Mettler-Toledo’s second-quarter 2024 results are likely to have reflected the adverse impacts of macroeconomic headwinds, growing geo-political tensions and unfavorable foreign exchange rate fluctuations.

Sluggishness across its core industrial business is expected to have been a major headwind for the company’s Industrial segment.

The Zacks Consensus Estimate for Industrial sales is pegged at $357.1 million, indicating a fall of 10.5% from the year-ago reported figure.

Weakening demand among pharma and biopharma customers, particularly in China, is likely to have affected the Laboratory segment’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for Laboratory sales is pegged at $511.20 million, indicating a fall of 2.9% from the year-ago reported figure.

Softness across the food retail segment is expected to have negatively impacted the top-line growth in the second quarter.

Weakening conditions in the Asia/Rest of the World region, primarily due to low market demand in China, may have been a concern.

Nevertheless, the company’s portfolio strength, cost-cutting efforts, robust sales and marketing strategies, and margin and productivity initiatives are expected to have aided its second-quarter performance.

Increasing demand across sustainable materials, semiconductors, and alternative energy markets is likely to have acted as a tailwind.

The company’s solid execution of its Spinnaker and SternDrive programs is likely to have aided its financial performance in the quarter under review.

What Our Model Says

According to the Zacks model, 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. But that’s not the case here.

Mettler-Toledo currently has an Earnings ESP of -0.89% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share.

Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank #3 at present.

Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.33 per share, suggesting a jump of 5.6% from the prior-year quarter.

GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.

GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY’s earnings is pegged at $1.07 per share, indicating growth of 69.8% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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