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Mettler-Toledo (MTD) Q1 Earnings & Sales Top Estimates, Up Y/Y
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Mettler-Toledo International, Inc. (MTD - Free Report) reported first-quarter 2021 adjusted earnings of $6.56 per share, which beat the Zacks Consensus Estimate by 16.1%. The bottom line also improved 64% on a year-over-year basis but declined 29.1% sequentially.
Net sales of $804.4 million were up 24% on a reported basis and 18% on a currency-neutral basis from the year-ago quarter. Also, the figure surpassed the Zacks Consensus Estimate of $758 million.
However, the topline was down 14.2% sequentially.
Strong performance delivered by the company across all geographies, especially in China, remained a major positive. Further, growing momentum across the Laboratory, Industrial and Food Retail segments in the reported quarter drove the year-over-year top-line growth.
Additionally, solid customer demand along with proper execution and cost-control strategiescontributed well.
However, headwinds related to the pandemic remain concerning for the company in the days ahead.
Nevertheless, its portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategiesare expected to remain tailwinds amid the COVID-related uncertainties.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
By Segments: The company reports under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 55%, 39% and 6% of the net sales in the firstquarter, respectively. Further, the Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 20%, 17% and 13%, respectively, in the quarter under review.
By Geography: The company reports total salesfrom the Americas, Europe and Asia/Rest of the World. All the regions contributed 38%, 30% and 32% to net sales in the first quarter, respectively. Further, sales in the Americas, Europe and Asia/Rest of the Worldwent up 14%, 14% and 29%, respectively, on a year-over-year basis.
Operating Results
Gross margin was 58.6%, expanding 90 bps year over year.
Research & development (R&D) expenses were $39.3 million, up 14.2% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 11.6% year over year to $221.7 million.
As a percentage of sales, R&D expenses contracted 40 bps year over year to 4.9%. Further, SG&A expenses contracted 300 bps year over year to 27.6%.
Adjusted operating margin was 26.2%, which expanded 440 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2021, the company’s cash and cash equivalent balance was $106.6 million, up from $95.2 million on Dec 31, 2020.
Long-term debt was $1.6 billion at the end of the first quarter, increasing from $1.3 billion at the end of thefourth quarter.
Mettler-Toledo generated $158.9 million of cash from operating activities in the reported quarter, down from $250.9million in the previous quarter. Free cash flow was $138.9 million in the reported quarter.
Guidance
For second-quarter 2021, Mettler-Toledo anticipates year-over-year sales growth between 19% and 21% in local currency. The Zacks Consensus Estimate for sales is pegged at $798.4 million.
Adjusted second-quarter earnings are anticipated to be $7.50-$7.65 per share, implying a 42%-45% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $6.37 per share.
For 2021, the company anticipates year-over-year sales growth of 10-12% in local currency. The Zacks Consensus Estimate for sales is pegged at $3.38 billion.
Adjusted 2021 earnings are anticipated to be $31.45-$31.90 per share, suggesting year-over-year growth of 22-24%. The Zacks Consensus Estimate for the same is pegged at $29.76 per share.
Zacks Rank & Stocks to Consider
Mettler-Toledo currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate of Pure Storage, NVIDIA and Agilent, is pegged at 52.21%, 15.05% and 9%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Mettler-Toledo (MTD) Q1 Earnings & Sales Top Estimates, Up Y/Y
Mettler-Toledo International, Inc. (MTD - Free Report) reported first-quarter 2021 adjusted earnings of $6.56 per share, which beat the Zacks Consensus Estimate by 16.1%. The bottom line also improved 64% on a year-over-year basis but declined 29.1% sequentially.
Net sales of $804.4 million were up 24% on a reported basis and 18% on a currency-neutral basis from the year-ago quarter. Also, the figure surpassed the Zacks Consensus Estimate of $758 million.
However, the topline was down 14.2% sequentially.
Strong performance delivered by the company across all geographies, especially in China, remained a major positive. Further, growing momentum across the Laboratory, Industrial and Food Retail segments in the reported quarter drove the year-over-year top-line growth.
Additionally, solid customer demand along with proper execution and cost-control strategiescontributed well.
However, headwinds related to the pandemic remain concerning for the company in the days ahead.
Nevertheless, its portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategiesare expected to remain tailwinds amid the COVID-related uncertainties.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
MettlerToledo International, Inc. price-consensus-eps-surprise-chart | MettlerToledo International, Inc. Quote
Top Line in Detail
By Segments: The company reports under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 55%, 39% and 6% of the net sales in the firstquarter, respectively. Further, the Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 20%, 17% and 13%, respectively, in the quarter under review.
By Geography: The company reports total salesfrom the Americas, Europe and Asia/Rest of the World. All the regions contributed 38%, 30% and 32% to net sales in the first quarter, respectively. Further, sales in the Americas, Europe and Asia/Rest of the Worldwent up 14%, 14% and 29%, respectively, on a year-over-year basis.
Operating Results
Gross margin was 58.6%, expanding 90 bps year over year.
Research & development (R&D) expenses were $39.3 million, up 14.2% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 11.6% year over year to $221.7 million.
As a percentage of sales, R&D expenses contracted 40 bps year over year to 4.9%. Further, SG&A expenses contracted 300 bps year over year to 27.6%.
Adjusted operating margin was 26.2%, which expanded 440 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2021, the company’s cash and cash equivalent balance was $106.6 million, up from $95.2 million on Dec 31, 2020.
Long-term debt was $1.6 billion at the end of the first quarter, increasing from $1.3 billion at the end of thefourth quarter.
Mettler-Toledo generated $158.9 million of cash from operating activities in the reported quarter, down from $250.9million in the previous quarter. Free cash flow was $138.9 million in the reported quarter.
Guidance
For second-quarter 2021, Mettler-Toledo anticipates year-over-year sales growth between 19% and 21% in local currency. The Zacks Consensus Estimate for sales is pegged at $798.4 million.
Adjusted second-quarter earnings are anticipated to be $7.50-$7.65 per share, implying a 42%-45% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $6.37 per share.
For 2021, the company anticipates year-over-year sales growth of 10-12% in local currency. The Zacks Consensus Estimate for sales is pegged at $3.38 billion.
Adjusted 2021 earnings are anticipated to be $31.45-$31.90 per share, suggesting year-over-year growth of 22-24%. The Zacks Consensus Estimate for the same is pegged at $29.76 per share.
Zacks Rank & Stocks to Consider
Mettler-Toledo currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector worth consideration are Agilent Technologies (A - Free Report) , Pure Storage (PSTG - Free Report) and NVIDIA (NVDA - Free Report) . All the stocks carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
Long-term earnings growth rate of Pure Storage, NVIDIA and Agilent, is pegged at 52.21%, 15.05% and 9%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>