We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Mettler-Toledo Q3 Earnings Top Estimates, Sales Up Y/Y, Shares Fall
Read MoreHide Full Article
Mettler-Toledo International (MTD - Free Report) shares fell 7.19% to close at $1,310.03 on Nov. 8 following third-quarter 2024 results.
MTD reported third-quarter 2024 adjusted earnings of $10.21 per share, which beat the Zacks Consensus Estimate by 2.1%. The bottom line increased 4.2% on a year-over-year basis.
Net sales of $954.5 million surpassed the Zacks Consensus Estimate of $942 million. The figure rose 1.3% on a reported basis and 1% on a local currency basis from the year-ago quarter.
The softness in the Food Retail and Industrial segments is concerning, especially in contrast to the stronger performance seen in the Laboratory business.
Mettler-Toledo International, Inc. Price, Consensus and EPS Surprise
Modest weakening conditions in the Americas region were significant headwinds, whereas growing momentum across Asia/Rest of World and Europe provided a tailwind.
MTD has gained 7.9% compared with the Zacks Computer and Technology sector’s rise of 30.4% in the year-to-date period.
MTD’s Top Line in Detail
MTD reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which generated sales of $534.8 million (56% of the net sales), $365.5 million (38.3% of the net sales) and $54.2 million (5.7% of the net sales), respectively, in the third quarter.
The Laboratory segment witnessed year-over-year growth of 5%, while the Industrial and Food Retail segments were flat. The Food Retail segment declined 20% on a local currency basis.
Total sales from the Americas, Europe and Asia/Rest of the World were $393.6 million (41.2% of the net sales), $260 million (27.2%) and $300.9 million (31.5%), respectively.
Sales in Europe and Asia/Rest of World grew 1% and 4% year over year, respectively, on a local currency basis. Meanwhile, Americas sales went down by 1%.
Mettler-Toledo’s Operating Results
The gross margin was 60%, expanding 60 basis points (bps) year over year.
Research & development (“R&D”) expenses were $47.1 million, up 2.1% from the year-ago quarter. Selling, general & administrative (“SG&A”) expenses increased 5.2% year over year to $228.8 million.
As a percentage of sales, R&D expenses were flat year over year at 4.9%. SG&A expenses expanded 90 bps year over year as a percentage of sales.
The adjusted operating margin was 31.1%, which contracted 30 bps from the prior-year quarter.
MTD’s Balance Sheet & Cash Flow
As of Sept. 30, 2024, Mettler-Toledo’s cash and cash equivalent balance was $71.6 million, up from $70.8 million as of June 30, 2024.
The long-term debt was $1.89 billion as of Sept. 30, 2024, compared with $1.75 billion.
Mettler-Toledo generated $254.7 million in cash from operating activities in the reported quarter compared with $257.5 million in the previous quarter. The free cash flow was $237.4 million in the reported quarter.
Mettler-Toledo’s Q4 & 2024 Guidance
For the fourth quarter of 2024, Mettler-Toledo anticipates sales to increase 8% in local currency from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.01 billion, indicating an increase of 8.12% from the year-ago quarter.
Adjusted earnings are anticipated to be $11.63-$11.78 per share, implying 24-25% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for earnings is pinned at $11.79 per share, suggesting an increase of 25.43% from the year-ago quarter.
For 2024, Mettler-Toledo anticipates sales in local currency to rise 2% from the year-earlier reported figure.
The Zacks Consensus Estimate for 2024 sales is pegged at $3.83 billion, suggesting an increase of 0.98% year over year.
The company increased its guidance for the adjusted EPS from $40.20-$40.50 to $40.35-$40.50. The new guidance range suggests growth of approximately 6% from the year-ago reported number, which includes a foreign-currency headwind of 2%.
The Zacks Consensus Estimate for the same is pegged at $40.34, an increase of 6.07% year over year.
MTD’s Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
Image: Bigstock
Mettler-Toledo Q3 Earnings Top Estimates, Sales Up Y/Y, Shares Fall
Mettler-Toledo International (MTD - Free Report) shares fell 7.19% to close at $1,310.03 on Nov. 8 following third-quarter 2024 results.
MTD reported third-quarter 2024 adjusted earnings of $10.21 per share, which beat the Zacks Consensus Estimate by 2.1%. The bottom line increased 4.2% on a year-over-year basis.
Net sales of $954.5 million surpassed the Zacks Consensus Estimate of $942 million. The figure rose 1.3% on a reported basis and 1% on a local currency basis from the year-ago quarter.
The softness in the Food Retail and Industrial segments is concerning, especially in contrast to the stronger performance seen in the Laboratory business.
Mettler-Toledo International, Inc. Price, Consensus and EPS Surprise
Mettler-Toledo International, Inc. price-consensus-eps-surprise-chart | Mettler-Toledo International, Inc. Quote
Modest weakening conditions in the Americas region were significant headwinds, whereas growing momentum across Asia/Rest of World and Europe provided a tailwind.
MTD has gained 7.9% compared with the Zacks Computer and Technology sector’s rise of 30.4% in the year-to-date period.
MTD’s Top Line in Detail
MTD reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which generated sales of $534.8 million (56% of the net sales), $365.5 million (38.3% of the net sales) and $54.2 million (5.7% of the net sales), respectively, in the third quarter.
The Laboratory segment witnessed year-over-year growth of 5%, while the Industrial and Food Retail segments were flat. The Food Retail segment declined 20% on a local currency basis.
Total sales from the Americas, Europe and Asia/Rest of the World were $393.6 million (41.2% of the net sales), $260 million (27.2%) and $300.9 million (31.5%), respectively.
Sales in Europe and Asia/Rest of World grew 1% and 4% year over year, respectively, on a local currency basis. Meanwhile, Americas sales went down by 1%.
Mettler-Toledo’s Operating Results
The gross margin was 60%, expanding 60 basis points (bps) year over year.
Research & development (“R&D”) expenses were $47.1 million, up 2.1% from the year-ago quarter. Selling, general & administrative (“SG&A”) expenses increased 5.2% year over year to $228.8 million.
As a percentage of sales, R&D expenses were flat year over year at 4.9%. SG&A expenses expanded 90 bps year over year as a percentage of sales.
The adjusted operating margin was 31.1%, which contracted 30 bps from the prior-year quarter.
MTD’s Balance Sheet & Cash Flow
As of Sept. 30, 2024, Mettler-Toledo’s cash and cash equivalent balance was $71.6 million, up from $70.8 million as of June 30, 2024.
The long-term debt was $1.89 billion as of Sept. 30, 2024, compared with $1.75 billion.
Mettler-Toledo generated $254.7 million in cash from operating activities in the reported quarter compared with $257.5 million in the previous quarter. The free cash flow was $237.4 million in the reported quarter.
Mettler-Toledo’s Q4 & 2024 Guidance
For the fourth quarter of 2024, Mettler-Toledo anticipates sales to increase 8% in local currency from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.01 billion, indicating an increase of 8.12% from the year-ago quarter.
Adjusted earnings are anticipated to be $11.63-$11.78 per share, implying 24-25% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for earnings is pinned at $11.79 per share, suggesting an increase of 25.43% from the year-ago quarter.
For 2024, Mettler-Toledo anticipates sales in local currency to rise 2% from the year-earlier reported figure.
The Zacks Consensus Estimate for 2024 sales is pegged at $3.83 billion, suggesting an increase of 0.98% year over year.
The company increased its guidance for the adjusted EPS from $40.20-$40.50 to $40.35-$40.50. The new guidance range suggests growth of approximately 6% from the year-ago reported number, which includes a foreign-currency headwind of 2%.
The Zacks Consensus Estimate for the same is pegged at $40.34, an increase of 6.07% year over year.
MTD’s Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are StoneCo (STNE - Free Report) , Palo Alto Networks (PANW - Free Report) and Bilibili (BILI - Free Report) . StoneCo sports a Zacks Rank #1 (Strong Buy), while Palo Alto and Bilibili carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
StoneCo shares have lost 37.3% in the year-to-date period. STNE is set to report third-quarter fiscal 2025 results on Nov. 12.
Palo Alto Networks shares have jumped 200.3% year to date. PANW is set to report first-quarter fiscal 2025 results on Nov. 20.
Bilibili shares have gained 98.3% year to date. BILI is set to report third-quarter 2024 results on Nov. 14.