The Middleby Corporation (MIDD - Free Report) reported second-quarter 2022 adjusted earnings (excluding 16 cents from non-recurring items) of $2.23 per share, which beat the Zacks Consensus Estimate of $2.16. The bottom line increased 6% year over year on higher sales.
Net sales of $1013.6 million surpassed the Zacks Consensus Estimate of $997.8 million. The top line jumped 25.3% year over year. Organic revenues in the reported quarter increased 13.3% year over year on the back of higher shipments. Acquired assets boosted sales by 14.4%, while movements in foreign currencies had a negative impact of 2.5%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 60.1% of the net sales) were $609.68 million, up 19.8% year over year. Organic sales in the reported quarter increased 17.7%. Buyouts boosted sales by 4%, while movements in foreign currencies had a headwind of 1.9%.
Sales from the Residential Kitchen Equipment Group (representing 27.6% of the reported quarter’s net sales) totaled $280 million, up 64.7% year over year. Organic sales in the quarter under review increased 11.4%. Buyouts had a positive impact of 56.8%, whereas movements in foreign currencies had a negative impact of 3.5%.
Sales from the Food Processing Equipment Group (representing 12.2% of the reported net sales) summed $123.9 million, down 4.7% year over year. Organic sales in the quarter dipped 1.4%, while movements in foreign currencies had a negative impact of 3.4%.
Margin Profile
In the second quarter, Middleby’s cost of sales increased 29.3% year over year to $652.86 million. Gross profit expanded 18.8% to $360.74 million. Gross margin decreased to 35.6% from 37.6% in the year-ago quarter.
Selling, general and administrative expenses increased 14.3% year over year to $189.49 million. Operating income in the second quarter increased 22.3% year over year to $167.23 million. Operating margin decreased to 16.5% from 16.9% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the second quarter, Middleby had cash and cash equivalents of $166.59 million compared with $180.36 million at the end of December 2021. Long-term debt was $2.65 billion at the end of the second quarter compared with $2.39 billion at the end of 2021.
In the first six months of 2022, MIDD generated net cash of $89.46 million compared with $172.38 million at the end of the year-ago period. Capital expenditure (net of sale proceeds) totaled $32.13 million compared with $13.36 million at the end of the first half of 2021. Free cash flow was $57.33 million, down 64% from the year-ago period.
Zacks Rank & Key Picks
Middleby carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Industrial Products sector are as follows:
Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Greif has an estimated earnings growth rate of 36.8% for the current year. Shares of the company have gained 18% in the past six months.
Titan International, Inc. presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 47%, on average.
Titan International has an estimated earnings growth rate of 157.7% for the current year. Shares of the company have rallied 40% in the past six months.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
The Middleby Corporation (MIDD - Free Report) reported second-quarter 2022 adjusted earnings (excluding 16 cents from non-recurring items) of $2.23 per share, which beat the Zacks Consensus Estimate of $2.16. The bottom line increased 6% year over year on higher sales.
Net sales of $1013.6 million surpassed the Zacks Consensus Estimate of $997.8 million. The top line jumped 25.3% year over year. Organic revenues in the reported quarter increased 13.3% year over year on the back of higher shipments. Acquired assets boosted sales by 14.4%, while movements in foreign currencies had a negative impact of 2.5%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 60.1% of the net sales) were $609.68 million, up 19.8% year over year. Organic sales in the reported quarter increased 17.7%. Buyouts boosted sales by 4%, while movements in foreign currencies had a headwind of 1.9%.
Sales from the Residential Kitchen Equipment Group (representing 27.6% of the reported quarter’s net sales) totaled $280 million, up 64.7% year over year. Organic sales in the quarter under review increased 11.4%. Buyouts had a positive impact of 56.8%, whereas movements in foreign currencies had a negative impact of 3.5%.
Sales from the Food Processing Equipment Group (representing 12.2% of the reported net sales) summed $123.9 million, down 4.7% year over year. Organic sales in the quarter dipped 1.4%, while movements in foreign currencies had a negative impact of 3.4%.
Margin Profile
In the second quarter, Middleby’s cost of sales increased 29.3% year over year to $652.86 million. Gross profit expanded 18.8% to $360.74 million. Gross margin decreased to 35.6% from 37.6% in the year-ago quarter.
Selling, general and administrative expenses increased 14.3% year over year to $189.49 million. Operating income in the second quarter increased 22.3% year over year to $167.23 million. Operating margin decreased to 16.5% from 16.9% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the second quarter, Middleby had cash and cash equivalents of $166.59 million compared with $180.36 million at the end of December 2021. Long-term debt was $2.65 billion at the end of the second quarter compared with $2.39 billion at the end of 2021.
In the first six months of 2022, MIDD generated net cash of $89.46 million compared with $172.38 million at the end of the year-ago period. Capital expenditure (net of sale proceeds) totaled $32.13 million compared with $13.36 million at the end of the first half of 2021. Free cash flow was $57.33 million, down 64% from the year-ago period.
Zacks Rank & Key Picks
Middleby carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Industrial Products sector are as follows:
Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Greif has an estimated earnings growth rate of 36.8% for the current year. Shares of the company have gained 18% in the past six months.
Titan International, Inc. presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 47%, on average.
Titan International has an estimated earnings growth rate of 157.7% for the current year. Shares of the company have rallied 40% in the past six months.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Get the latest research report on MIDD - FREE
Get the latest research report on TWI - FREE
Get the latest research report on GEF - FREE