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Mettler-Toledo International, Inc. (MTD - Free Report) reported second-quarter 2021 adjusted earnings of $8.10 per share, which beat the Zacks Consensus Estimate by 6.02%. The bottom line also improved 53.1% on a year-over-year basis and 23.5% sequentially.
Net sales of $924.4 million were up 34% on a reported basis and 27% on a currency-neutral basis from the year-ago quarter. The figure was up 14.9% sequentially. The figure surpassed the Zacks Consensus Estimate of $855 million.
Solid momentum across the Laboratory, Industrial and Food Retail segments in the reported quarter drove top-line growth. Strong performance delivered by the company across all geographies remained a major positive, owing to robust customer demand.
Although headwinds related to the pandemic remain concerning for the company in the days ahead;its portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategiesare expected to remain tailwinds.
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%, 40% and 5% of the net sales in the second quarter, respectively. The Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 35%, 20% and 5%, 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%, 28% and 34% to net sales in the second quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the Worldwent up 29%, 23% and 28%, respectively, on a year-over-year basis.
Operating Results
Gross margin was 58.1%, expanding 50 basis points (bps) year over year.
Research & development (R&D) expenses were $42.6 million, up 36.6% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 25.7% year over year to $239.04 million.
As a percentage of sales, R&D expenses expanded 10 bps year over year to 4.6%. SG&A expenses contracted 160 bps year over year to 25.9%.
Adjusted operating margin was 27.6%, which expanded 200 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2021, the company’s cash and cash equivalent balance was $142.3 million, up from $106.6 million as of Mar 31, 2021.
Long-term debt was $1.60 billion at the end of the second quarter, increasing from $1.56 billion at the end of the first quarter.
Mettler-Toledo generated $245.5 million in cash from operating activities in the reported quarter, up from $158.9million in the previous quarter. Free cash flow was $233.3 million in the reported quarter.
Guidance
For third-quarter 2021, Mettler-Toledo anticipates year-over-year sales growth between 11% and 13% in local currency. The Zacks Consensus Estimate for sales is pegged at $880.9 million.
Adjusted third-quarter earnings are anticipated to be $8.12-$8.27 per share, implying a 16-18% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.63per share.
For 2021, the company anticipates year-over-year sales growth of 15%. The Zacks Consensus Estimate for sales is pegged at $3.56 billion.
Mettler-Toledo raised the guidance for adjusted 2021 earnings from $31.45-$31.90 to $32.60-$32.90 per share, suggesting year-over-year growth of 27-28%. The Zacks Consensus Estimate for the same is pegged at $31.90 per share.
Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
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Mettler-Toledo (MTD) Q2 Earnings & Sales Beat, Increase Y/Y
Mettler-Toledo International, Inc. (MTD - Free Report) reported second-quarter 2021 adjusted earnings of $8.10 per share, which beat the Zacks Consensus Estimate by 6.02%. The bottom line also improved 53.1% on a year-over-year basis and 23.5% sequentially.
Net sales of $924.4 million were up 34% on a reported basis and 27% on a currency-neutral basis from the year-ago quarter. The figure was up 14.9% sequentially. The figure surpassed the Zacks Consensus Estimate of $855 million.
Solid momentum across the Laboratory, Industrial and Food Retail segments in the reported quarter drove top-line growth. Strong performance delivered by the company across all geographies remained a major positive, owing to robust customer demand.
Although headwinds related to the pandemic remain concerning for the company in the days ahead;its portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategiesare expected to remain tailwinds.
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%, 40% and 5% of the net sales in the second quarter, respectively. The Laboratory, Industrial and Food Retail segments witnessed year-over-year growth of 35%, 20% and 5%, 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%, 28% and 34% to net sales in the second quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the Worldwent up 29%, 23% and 28%, respectively, on a year-over-year basis.
Operating Results
Gross margin was 58.1%, expanding 50 basis points (bps) year over year.
Research & development (R&D) expenses were $42.6 million, up 36.6% from the year-ago quarter. Selling, general & administrative (SG&A) expenses increased 25.7% year over year to $239.04 million.
As a percentage of sales, R&D expenses expanded 10 bps year over year to 4.6%. SG&A expenses contracted 160 bps year over year to 25.9%.
Adjusted operating margin was 27.6%, which expanded 200 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2021, the company’s cash and cash equivalent balance was $142.3 million, up from $106.6 million as of Mar 31, 2021.
Long-term debt was $1.60 billion at the end of the second quarter, increasing from $1.56 billion at the end of the first quarter.
Mettler-Toledo generated $245.5 million in cash from operating activities in the reported quarter, up from $158.9million in the previous quarter. Free cash flow was $233.3 million in the reported quarter.
Guidance
For third-quarter 2021, Mettler-Toledo anticipates year-over-year sales growth between 11% and 13% in local currency. The Zacks Consensus Estimate for sales is pegged at $880.9 million.
Adjusted third-quarter earnings are anticipated to be $8.12-$8.27 per share, implying a 16-18% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $7.63per share.
For 2021, the company anticipates year-over-year sales growth of 15%. The Zacks Consensus Estimate for sales is pegged at $3.56 billion.
Mettler-Toledo raised the guidance for adjusted 2021 earnings from $31.45-$31.90 to $32.60-$32.90 per share, suggesting year-over-year growth of 27-28%. The Zacks Consensus Estimate for the same is pegged at $31.90 per share.
Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are NXP Semiconductors (NXPI - Free Report) , Semtech Corporation (SMTC - Free Report) and Agilent Technologies (A - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for NXP, Semtech and Agilent are currently projected at 10%, 12.5% and 13%, respectively.