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The Middleby Corporation (MIDD - Free Report) reported third-quarter 2023 adjusted earnings (excluding 34 cents from non-recurring items) of $2.35 per share, which surpassed the Zacks Consensus Estimate of $2.29. The bottom line increased 7.8% year over year due to lower costs.
Net sales of $980.7 million missed the Zacks Consensus Estimate of $1020.6 million. The top line dipped 1.2% year over year. Organic revenues in the reported quarter decreased 1.4%. Acquired assets boosted sales by 1.8%, while movements in foreign currencies had a positive impact of 1.3%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 64.6% of the net sales) were $634.01 million, up 2.3% year over year. Our estimate for Commercial Foodservice revenues in the third quarter was $635.9 million. Organic sales in the reported quarter inched up 0.2%. Buyouts boosted sales by 1.3%, while foreign-currency translation had a positive impact of 0.9%.
The Middleby Corporation Price, Consensus and EPS Surprise
Sales from the Residential Kitchen Equipment Group (representing 18.4% of the reported quarter’s net sales) totaled $179.98 million, down 18.6% year over year. Results were hurt by inventory de-stocking in the residential business and housing market weakness. Our estimate for segmental revenues was $211.3 million. Organic sales in the quarter under review dropped 21%. Favorable foreign currency movements boosted sales by 2.1%.
Sales from the Food Processing Equipment Group (representing 17% of the reported net sales) summed $166.67 million, up 9.4% year over year. Our estimate for Food Processing revenues was pegged at $173.5 million. Organic sales in the third quarter increased 1.2%. Acquisitions boosted sales by 6%, while foreign currency movements had a favorable impact of 2.2%.
Margin Profile
In the third quarter, Middleby’s cost of sales decreased 3.6% year over year to $605.33 million. Gross profit augmented 2.8% to $375.32 million. Gross margin increased to 38.3% from 36.8% in the year-ago quarter.
Selling, general and administrative expenses decreased 2.4% year over year to $196.43 million. Segment operating income in the third quarter rose 7.9% year over year to $174.44 million. Operating margin increased to 17.8% from 16.3% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the third quarter, Middleby had cash and cash equivalents of $167.19 million compared with $162 million at the end of December 2022. Long-term debt was $2.54 billion at the end of the third quarter compared with $2.68 billion at 2022-end.
In the first nine months of 2023, Middleby, carrying a Zacks Rank #3 (Hold), generated net cash of $373.10 million from operating activities compared with $173.45 million in the year-ago period. Capital expenditure totaled $69.65 million compared with $50.91 in the year-ago period. Free cash flow was $303.46 million in the first nine months of 2023 compared with $122.54 million in the year-ago period.
Performance of Other Industrial Companies
Axon Enterprise, Inc. (AXON - Free Report) , carrying a Zacks Rank #3, reported third-quarter 2023 earnings (excluding 7 cents from non-recurring items) of 71 cents per share. The bottom line increased significantly year over year despite a 33.6% jump in the cost of sales. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Axon’s total revenues of $413.6 million outperformed the Zacks Consensus Estimate of $393.8 million and augmented 32.7% year over year. The top line benefited from strength in Axon Cloud software, demand for Axon Fleet systems and the ramp-up of TASER 10 and Axon Body 4.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #3, reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings (excluding 97 cents from non-recurring items) of $5.96 per share, which beat the Zacks Consensus Estimate of $5.33. The bottom line jumped 26% year over year.
Parker-Hannifin’s total revenues of $4,847.5 million missed the Zacks Consensus Estimate of $4,890.3 million. The top line jumped 14.5% year over year. Contribution from the Meggitt acquisition and operational improvement drove the company’s top line. Organic sales for the quarter increased 2% year over year. Orders were up 2% year over year.
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Middleby (MIDD) Q3 Earnings Beat, Revenues Decrease Y/Y
The Middleby Corporation (MIDD - Free Report) reported third-quarter 2023 adjusted earnings (excluding 34 cents from non-recurring items) of $2.35 per share, which surpassed the Zacks Consensus Estimate of $2.29. The bottom line increased 7.8% year over year due to lower costs.
Net sales of $980.7 million missed the Zacks Consensus Estimate of $1020.6 million. The top line dipped 1.2% year over year. Organic revenues in the reported quarter decreased 1.4%. Acquired assets boosted sales by 1.8%, while movements in foreign currencies had a positive impact of 1.3%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 64.6% of the net sales) were $634.01 million, up 2.3% year over year. Our estimate for Commercial Foodservice revenues in the third quarter was $635.9 million. Organic sales in the reported quarter inched up 0.2%. Buyouts boosted sales by 1.3%, while foreign-currency translation had a positive impact of 0.9%.
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 18.4% of the reported quarter’s net sales) totaled $179.98 million, down 18.6% year over year. Results were hurt by inventory de-stocking in the residential business and housing market weakness. Our estimate for segmental revenues was $211.3 million. Organic sales in the quarter under review dropped 21%. Favorable foreign currency movements boosted sales by 2.1%.
Sales from the Food Processing Equipment Group (representing 17% of the reported net sales) summed $166.67 million, up 9.4% year over year. Our estimate for Food Processing revenues was pegged at $173.5 million. Organic sales in the third quarter increased 1.2%. Acquisitions boosted sales by 6%, while foreign currency movements had a favorable impact of 2.2%.
Margin Profile
In the third quarter, Middleby’s cost of sales decreased 3.6% year over year to $605.33 million. Gross profit augmented 2.8% to $375.32 million. Gross margin increased to 38.3% from 36.8% in the year-ago quarter.
Selling, general and administrative expenses decreased 2.4% year over year to $196.43 million. Segment operating income in the third quarter rose 7.9% year over year to $174.44 million. Operating margin increased to 17.8% from 16.3% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the third quarter, Middleby had cash and cash equivalents of $167.19 million compared with $162 million at the end of December 2022. Long-term debt was $2.54 billion at the end of the third quarter compared with $2.68 billion at 2022-end.
In the first nine months of 2023, Middleby, carrying a Zacks Rank #3 (Hold), generated net cash of $373.10 million from operating activities compared with $173.45 million in the year-ago period. Capital expenditure totaled $69.65 million compared with $50.91 in the year-ago period. Free cash flow was $303.46 million in the first nine months of 2023 compared with $122.54 million in the year-ago period.
Performance of Other Industrial Companies
Axon Enterprise, Inc. (AXON - Free Report) , carrying a Zacks Rank #3, reported third-quarter 2023 earnings (excluding 7 cents from non-recurring items) of 71 cents per share. The bottom line increased significantly year over year despite a 33.6% jump in the cost of sales. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Axon’s total revenues of $413.6 million outperformed the Zacks Consensus Estimate of $393.8 million and augmented 32.7% year over year. The top line benefited from strength in Axon Cloud software, demand for Axon Fleet systems and the ramp-up of TASER 10 and Axon Body 4.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #3, reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings (excluding 97 cents from non-recurring items) of $5.96 per share, which beat the Zacks Consensus Estimate of $5.33. The bottom line jumped 26% year over year.
Parker-Hannifin’s total revenues of $4,847.5 million missed the Zacks Consensus Estimate of $4,890.3 million. The top line jumped 14.5% year over year. Contribution from the Meggitt acquisition and operational improvement drove the company’s top line. Organic sales for the quarter increased 2% year over year. Orders were up 2% year over year.