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Mettler-Toledo International, Inc. (MTD - Free Report) reported first-quarter 2022 adjusted earnings of $7.87 per share, which beat the Zacks Consensus Estimate by 7.5%. The bottom line also improved 20% on a year-over-year basis.
Net sales of $897.8 million were up 12% on a reported basis and 14% on a currency-neutral basis from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $871.5 million.
Solid momentum across the Laboratory and Industrial segments in the reported quarter drove top-line growth. The strong performance delivered by the company across all geographies remained a major positive.
However, the company witnessed sluggishness in its Food Retail segment.
Headwinds related to the pandemic remain concerning for Mettler-Toledo in the days ahead. However, portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategies are expected to remain tailwinds.
MettlerToledo International, Inc. Price, Consensus and EPS Surprise
By Segments: The company reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 57%, 38% and 5% of net sales in the first quarter, respectively. The Laboratory and Industrial segments witnessed year-over-year growth of 18% and 12%, respectively, in the quarter under review.
The Food Retail business was down 14% on a year-over-year basis.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World, contributing 39%, 28% and 33% to net sales in the first quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the World went up 16%, 10% and 15%, respectively, on a year-over-year basis.
Operating Results
The gross margin was 57.9%, contracting 70 basis points (bps) year over year.
Research & development (R&D) expenses were $43.03 million, up 9.6% from the year-ago quarter’s level. Selling, general & administrative (SG&A) expenses increased 6.1% year over year to $235.3 million.
As a percentage of sales, R&D expenses contracted 10 bps year over year to 4.8%. SG&A expenses contracted 140 bps year over year to 26.2%.
The adjusted operating margin was 26.9%, which expanded 70 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Mar 31, 2022, the company’s cash and cash equivalent balance was $116.9 million, up from $98.6 million as of Dec 31, 2021.
Long-term debt was $1.8 billion at the end of the first quarter, increasing from $1.6 billion at the end of the fourth quarter.
Mettler-Toledo generated $90.8 million in cash from operating activities in the reported quarter, down from $241.1 million in the previous quarter. Free cash flow was $75.4 million in the reported quarter.
Guidance
For second-quarter 2022, Mettler-Toledo projects year-over-year sales growth of 7% in local currency. The Zacks Consensus Estimate for sales is pegged at $944.02 million.
Adjusted second-quarter earnings are anticipated to be $8.70-$8.80 per share, implying a 7-9% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $8.78 per share.
For 2022, the company hiked its guidance for year-over-year sales growth in local currency from 7% to 8%. The Zacks Consensus Estimate for the same is pegged at $3.95 billion.
Mettler-Toledo also revised the guidance for adjusted 2022 earnings from $38.15-$38.50 per share to $38.20-$38.50, suggesting growth of 12-13% from the year-ago reported number. The Zacks Consensus Estimate for the same is pegged at $38.36.
Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
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Mettler-Toledo (MTD) Q1 Earnings & Sales Beat, Increase Y/Y
Mettler-Toledo International, Inc. (MTD - Free Report) reported first-quarter 2022 adjusted earnings of $7.87 per share, which beat the Zacks Consensus Estimate by 7.5%. The bottom line also improved 20% on a year-over-year basis.
Net sales of $897.8 million were up 12% on a reported basis and 14% on a currency-neutral basis from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $871.5 million.
Solid momentum across the Laboratory and Industrial segments in the reported quarter drove top-line growth. The strong performance delivered by the company across all geographies remained a major positive.
However, the company witnessed sluggishness in its Food Retail segment.
Headwinds related to the pandemic remain concerning for Mettler-Toledo in the days ahead. However, portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategies are 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 revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which accounted for 57%, 38% and 5% of net sales in the first quarter, respectively. The Laboratory and Industrial segments witnessed year-over-year growth of 18% and 12%, respectively, in the quarter under review.
The Food Retail business was down 14% on a year-over-year basis.
By Geography: The company reports total sales from the Americas, Europe and Asia/Rest of the World, contributing 39%, 28% and 33% to net sales in the first quarter, respectively. Sales in the Americas, Europe and Asia/Rest of the World went up 16%, 10% and 15%, respectively, on a year-over-year basis.
Operating Results
The gross margin was 57.9%, contracting 70 basis points (bps) year over year.
Research & development (R&D) expenses were $43.03 million, up 9.6% from the year-ago quarter’s level. Selling, general & administrative (SG&A) expenses increased 6.1% year over year to $235.3 million.
As a percentage of sales, R&D expenses contracted 10 bps year over year to 4.8%. SG&A expenses contracted 140 bps year over year to 26.2%.
The adjusted operating margin was 26.9%, which expanded 70 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Mar 31, 2022, the company’s cash and cash equivalent balance was $116.9 million, up from $98.6 million as of Dec 31, 2021.
Long-term debt was $1.8 billion at the end of the first quarter, increasing from $1.6 billion at the end of the fourth quarter.
Mettler-Toledo generated $90.8 million in cash from operating activities in the reported quarter, down from $241.1 million in the previous quarter. Free cash flow was $75.4 million in the reported quarter.
Guidance
For second-quarter 2022, Mettler-Toledo projects year-over-year sales growth of 7% in local currency. The Zacks Consensus Estimate for sales is pegged at $944.02 million.
Adjusted second-quarter earnings are anticipated to be $8.70-$8.80 per share, implying a 7-9% rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $8.78 per share.
For 2022, the company hiked its guidance for year-over-year sales growth in local currency from 7% to 8%. The Zacks Consensus Estimate for the same is pegged at $3.95 billion.
Mettler-Toledo also revised the guidance for adjusted 2022 earnings from $38.15-$38.50 per share to $38.20-$38.50, suggesting growth of 12-13% from the year-ago reported number. The Zacks Consensus Estimate for the same is pegged at $38.36.
Zacks Rank & Stocks to Consider
Currently, Mettler-Toledo has a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Jack Henry & Associates (JKHY - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Jack Henry & Associates and Broadcom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 5.5% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Jack Henry & Associates has gained 16.9% over a year. The long-term earnings growth rate for JKHY is currently projected at 17%.
Broadcom has gained 20% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.