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Mettler-Toledo (MTD) to Post Q2 Earnings: What's in Store?

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Mettler-Toledo International, Inc. (MTD - Free Report) is scheduled to report second-quarter 2021 results on Jul 29.

For the second quarter, the company anticipates year-over-year sales growth between 19% and 21% in local currency. The Zacks Consensus Estimate for the same is pegged at $879.9 million, indicating growth of 27.4% from the year-ago reported figure.

Adjusted quarterly 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 consensus mark for the same is pegged at $7.64 per share, suggesting a rise of 44.4% from the year-ago quarter.

We note the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 15.7%.

Key Factors to Consider

Mettler-Toledo’s portfolio strength, cost-cutting efforts, robust sales and marketing strategies, and margin and productivity initiatives are expected to have aided second-quarter performance.

The company’s solid momentum across Laboratory, Food Retail and Industrial segments are expected to get reflected in the soon-to-be-reported quarterly results.

Its investments in product portfolio expansion, field force, Spinnaker sales and marketing programs are likely to have driven sales growth in the Laboratory Instruments segment. Strong momentum across pharmaceutical and life sciences markets is expected to have benefited the segment in the quarter under review. The company’s strong analytical instruments portfolio is expected to have contributed well.

Solid COVID-related testing demand, favourable biopharma trend and acceleration in vaccine research and bioproduction are likely to have been key catalysts for the Laboratory segment in the second quarter.

Robust automated chemistry solutions are expected to have aided Mettler-Toledo’s momentum across the drug process development field in the second quarter.

The growing momentum across the core industrial business is likely to have driven the Industrial Instruments segment’s sales in the to-be-reported quarter.

Strengthening momentum across the Food Retail segment is expected to have contributed well to the Retail segment’s top-line growth in the quarter under review. Strong market conditions in Europe and Asia are also likely to have been tailwinds for the segment in the second quarter.

However, headwinds related to the coronavirus pandemic are likely to have continued posing challenges to the company in the soon-to-be-reported quarter. Softness in the product inspection business is expected to have hurt.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Mettler-Toledo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mettler-Toledo has an Earnings ESP of +1.05% and a Zacks Rank #2.

Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that these too have the right combination of elements to post an earnings beat this quarter.

CyberArk Software Ltd. (CYBR - Free Report) has an Earnings ESP of +37.93% and it sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carrier Global Corporation (CARR - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 2, currently.

Waters Corporation (WAT - Free Report) has an Earnings ESP of +2.71% and a Zacks Rank of 3 at present.