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 (MTD) Q1 Earnings: Is a Beat in the Cards?
Read MoreHide Full Article
Mettler-Toledo International Inc. (MTD - Free Report) will report first-quarter 2017 earnings on May 4 after the bell.
Last quarter, the company posted a positive earnings surprise of 3.33%. In fact, Mettler-Toledo boasts a solid surprise history, having beaten estimates in each of the trailing four quarters. The average earnings surprise over the last four quarters is a positive 3.4%.
We also note that year to date, shares of Mettler-Toledo outperformed the Zacks categorized Instruments - Scientific industry. While the stock recorded growth of 23.4%, the industry gained 19.6%.
Why a Likely Positive Surprise?
The company has a Zacks Rank #2 (Buy) and an Earnings ESP of +0.33%, a combination that increases the probability of a positive surprise. This is because, per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.
What Happened in the Fourth Quarter?
Mettler-Toledo delivered strong fourth-quarter 2016 results, beating the Zacks Consensus Estimate on both counts.
Net revenue of $709.7 million was up 5.4% on a year-over-year basis. Non-GAAP net income was $141.9 million compared with $130.6 million a year ago. The better-than-expected results were the result of strong market conditions and good execution.
Mettler-Toledo International, Inc. Price and EPS Surprise
Mettler-Toledo’s strong global network of sales and service organizations offer significant revenue opportunities.
The company is focused on the development of advanced products and cost reductions by making prudent investments in research and development.
On the technological advancement front, the focus is on new or enhanced functionality, new applications, more accurate or reliable measurement, automation through robotics and additional software capability.
On the cost reduction front, the focus is on reduction of manufacturing cost through design and serviceability enhancements. We believe technology development and cost management will impact margins positively.
We remain positive about the company’s Stern Drive program aimed at operational improvement through material cost reductions, shop floor productivity and back office productivity. We expect this program to complement existing Spinnaker and Blue Ocean programs and enhance supply chain and manufacturing efficiencies.
For the first quarter, Mettler-Toledo expects local currency sales to grow approximately 8% Adjusted EPS is expected to grow 24% to 26% to $3.05 to $3.10.
Note that the company’s business segments, especially the high-end laboratory instruments business experiences seasonality. This segment experiences stronger demand in the fourth quarter and weaker demand in the first quarter, relative to second and third quarters. The seasonality causes considerable fluctuations in revenues and profits and makes forecasting difficult.
Summing Up
Mettler-Toledo’s leading market position, focus on product development and cost reduction, sales and marketing efforts and the Blue Ocean program bode well. The company has a solid history of positive surprises and this quarter may not be different. Its positive Earnings ESP and a favorable Zacks Rank #2 enhance the likelihood of a positive surprise.
Other Stocks to Consider
Here are some companies which, as per our model, also have the right combination of elements to post an earnings beat this quarter:
The Priceline Group Inc. , with an Earnings ESP of +2.06% and a Zacks Rank #3.
PerkinElmer, Inc. , with an Earnings ESP of +1.85% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Mettler-Toledo (MTD) Q1 Earnings: Is a Beat in the Cards?
Mettler-Toledo International Inc. (MTD - Free Report) will report first-quarter 2017 earnings on May 4 after the bell.
Last quarter, the company posted a positive earnings surprise of 3.33%. In fact, Mettler-Toledo boasts a solid surprise history, having beaten estimates in each of the trailing four quarters. The average earnings surprise over the last four quarters is a positive 3.4%.
We also note that year to date, shares of Mettler-Toledo outperformed the Zacks categorized Instruments - Scientific industry. While the stock recorded growth of 23.4%, the industry gained 19.6%.
Why a Likely Positive Surprise?
The company has a Zacks Rank #2 (Buy) and an Earnings ESP of +0.33%, a combination that increases the probability of a positive surprise. This is because, per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.
What Happened in the Fourth Quarter?
Mettler-Toledo delivered strong fourth-quarter 2016 results, beating the Zacks Consensus Estimate on both counts.
Net revenue of $709.7 million was up 5.4% on a year-over-year basis. Non-GAAP net income was $141.9 million compared with $130.6 million a year ago. The better-than-expected results were the result of strong market conditions and good execution.
Mettler-Toledo International, Inc. Price and EPS Surprise
Mettler-Toledo International, Inc. Price and EPS Surprise | Mettler-Toledo International, Inc. Quote
What We Are Looking at Ahead of Results
Mettler-Toledo’s strong global network of sales and service organizations offer significant revenue opportunities.
The company is focused on the development of advanced products and cost reductions by making prudent investments in research and development.
On the technological advancement front, the focus is on new or enhanced functionality, new applications, more accurate or reliable measurement, automation through robotics and additional software capability.
On the cost reduction front, the focus is on reduction of manufacturing cost through design and serviceability enhancements. We believe technology development and cost management will impact margins positively.
We remain positive about the company’s Stern Drive program aimed at operational improvement through material cost reductions, shop floor productivity and back office productivity. We expect this program to complement existing Spinnaker and Blue Ocean programs and enhance supply chain and manufacturing efficiencies.
For the first quarter, Mettler-Toledo expects local currency sales to grow approximately 8% Adjusted EPS is expected to grow 24% to 26% to $3.05 to $3.10.
Note that the company’s business segments, especially the high-end laboratory instruments business experiences seasonality. This segment experiences stronger demand in the fourth quarter and weaker demand in the first quarter, relative to second and third quarters. The seasonality causes considerable fluctuations in revenues and profits and makes forecasting difficult.
Summing Up
Mettler-Toledo’s leading market position, focus on product development and cost reduction, sales and marketing efforts and the Blue Ocean program bode well. The company has a solid history of positive surprises and this quarter may not be different. Its positive Earnings ESP and a favorable Zacks Rank #2 enhance the likelihood of a positive surprise.
Other Stocks to Consider
Here are some companies which, as per our model, also have the right combination of elements to post an earnings beat this quarter:
EGain Corp. (EGAN - Free Report) , with an Earnings ESP of +50.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Priceline Group Inc. , with an Earnings ESP of +2.06% and a Zacks Rank #3.
PerkinElmer, Inc. , with an Earnings ESP of +1.85% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>