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.
The Middleby Corporation (MIDD - Free Report) reported fourth-quarter 2022 adjusted earnings (excluding 12 cents from non-recurring items) of $2.57 per share, which beat the Zacks Consensus Estimate of $2.46. The bottom line increased 21.8% year over year on higher sales.
Net sales of $1,031.7 million surpassed the Zacks Consensus Estimate of $1,012 million. The top line jumped 19.1% year over year. Organic revenues in the reported quarter increased 14% year over year due to higher shipments, thanks to the benefits of investments to increase production throughput. Acquired assets boosted sales by 8.2%, while movements in foreign currencies had a negative impact of 3.1%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 61.4% of the net sales) were $633.27 million, up 19.2% year over year. Organic sales in the reported quarter increased 19.4%. Buyouts boosted sales by 2.2%, while movements in foreign currencies had a headwind of 2.4%.
The Middleby Corporation Price, Consensus and EPS Surprise
Sales from the Residential Kitchen Equipment Group (representing 20.9% of the reported quarter’s net sales) totaled $216.07 million, up 3.1% year over year. Organic sales in the quarter under review decreased 8.7%. Buyouts had a positive impact of 16.4%, whereas movements in foreign currencies had a negative impact of 4.6%.
Sales from the Food Processing Equipment Group (representing 17.7% of the reported net sales) summed $182.36 million, up 45.2% year over year. Organic sales in the quarter jumped 29.1%, while movements in foreign currencies had a negative impact of 3.5%. Acquisitions boosted sales by 19.7%.
Margin Profile
In the fourth quarter, Middleby’s cost of sales increased 16.5% year over year to $641.64 million. Gross profit expanded 23.6% to $641.64 million. Gross margin increased to 37.8% from 36.4% in the year-ago quarter.
Selling, general and administrative expenses increased 16.6% year over year to $200.48 million. Operating income in the fourth quarter rose 35.7% year over year to $188.11 million. Operating margin increased to 18.2% from 16% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the fourth quarter, Middleby had cash and cash equivalents of $162 million compared with $180.36 million at the end of December 2021. Long-term debt was $2.68 billion at the end of the fourth quarter compared with $2.39 billion at the end of 2021.
In 2022, MIDD, carrying a Zacks Rank #2 (Buy), generated net cash of $332.55 million from operating activities compared with $423.40 million at the end of the year-ago period. Capital expenditure (net of sale proceeds) totaled $67.29 million compared with $40.26 million at the end of 2022. Free cash flow was $265.26 million in 2022, down 30.8% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Stocks
Within the broader Industrial Products sector, the following companies have recently reported earnings numbers.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #2, reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Parker-Hannifin’s total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Xylem (XYL - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2022 adjusted earnings (excluding 10 cents from non-recurring items) of 92 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year.
Xylem’s revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Middleby (MIDD) Q4 Earnings & Revenues Beat, Increase Y/Y
The Middleby Corporation (MIDD - Free Report) reported fourth-quarter 2022 adjusted earnings (excluding 12 cents from non-recurring items) of $2.57 per share, which beat the Zacks Consensus Estimate of $2.46. The bottom line increased 21.8% year over year on higher sales.
Net sales of $1,031.7 million surpassed the Zacks Consensus Estimate of $1,012 million. The top line jumped 19.1% year over year. Organic revenues in the reported quarter increased 14% year over year due to higher shipments, thanks to the benefits of investments to increase production throughput. Acquired assets boosted sales by 8.2%, while movements in foreign currencies had a negative impact of 3.1%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 61.4% of the net sales) were $633.27 million, up 19.2% year over year. Organic sales in the reported quarter increased 19.4%. Buyouts boosted sales by 2.2%, while movements in foreign currencies had a headwind of 2.4%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Sales from the Residential Kitchen Equipment Group (representing 20.9% of the reported quarter’s net sales) totaled $216.07 million, up 3.1% year over year. Organic sales in the quarter under review decreased 8.7%. Buyouts had a positive impact of 16.4%, whereas movements in foreign currencies had a negative impact of 4.6%.
Sales from the Food Processing Equipment Group (representing 17.7% of the reported net sales) summed $182.36 million, up 45.2% year over year. Organic sales in the quarter jumped 29.1%, while movements in foreign currencies had a negative impact of 3.5%. Acquisitions boosted sales by 19.7%.
Margin Profile
In the fourth quarter, Middleby’s cost of sales increased 16.5% year over year to $641.64 million. Gross profit expanded 23.6% to $641.64 million. Gross margin increased to 37.8% from 36.4% in the year-ago quarter.
Selling, general and administrative expenses increased 16.6% year over year to $200.48 million. Operating income in the fourth quarter rose 35.7% year over year to $188.11 million. Operating margin increased to 18.2% from 16% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the fourth quarter, Middleby had cash and cash equivalents of $162 million compared with $180.36 million at the end of December 2021. Long-term debt was $2.68 billion at the end of the fourth quarter compared with $2.39 billion at the end of 2021.
In 2022, MIDD, carrying a Zacks Rank #2 (Buy), generated net cash of $332.55 million from operating activities compared with $423.40 million at the end of the year-ago period. Capital expenditure (net of sale proceeds) totaled $67.29 million compared with $40.26 million at the end of 2022. Free cash flow was $265.26 million in 2022, down 30.8% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Stocks
Within the broader Industrial Products sector, the following companies have recently reported earnings numbers.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #2, reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Parker-Hannifin’s total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Xylem (XYL - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2022 adjusted earnings (excluding 10 cents from non-recurring items) of 92 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year.
Xylem’s revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.