Kitchen product manufacturer Middleby (NYSE:MIDD) will be reporting results tomorrow before the bell. Here’s what to look for.
Middleby missed analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $942.8 million, down 3.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Middleby a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Middleby’s revenue to decline 1.1% year on year to $998 million, improving from the 2.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.55 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Middleby has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Middleby’s peers in the professional tools and equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ESAB’s revenues decreased 2.7% year on year, missing analysts’ expectations by 0.8%, and Lincoln Electric reported a revenue decline of 3.4%, topping estimates by 2.5%. ESAB traded down 4.1% following the results while Lincoln Electric was up 10%.
Read our full analysis of ESAB’s results here and Lincoln Electric’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election’s conclusion added further sparks to the market, and while some of the professional tools and equipment stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.8% on average over the last month. Middleby is down 3.2% during the same time and is heading into earnings with an average analyst price target of $182 (compared to the current share price of $166.33).
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