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What's in the Offing for Mettler-Toledo's (MTD) Q1 Earnings?

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Mettler-Toledo International, Inc. (MTD - Free Report) is set to report first-quarter 2019 results on May 9.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same only once, with an average positive earnings surprise of 1.31%.

Past-Quarter Performance

In the last reported quarter, Mettler-Toledo reported adjusted earnings of $6.85 per share, which surged 15% on a year-over-year basis. Moreover, the figure outpaced the Zacks Consensus Estimate by 11 cents.

Net sales of $817.92 million were up 5.1% year over year and surpassed the Zacks Consensus Estimate of $807.37 million.
The robust performance of Laboratory and Industrial product lines drove the top line. Further, the company’s solid momentum in China spurred growth.

How are Estimates Faring?

For first-quarter 2019, the company anticipates local currency sales growth of 5.5% on a year-over-year basis. Adjusted earnings are anticipated in the range of $4-$4.05 per share, reflecting year-over-year growth of 7-8%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Mettler-Toledo continues to ride on its solid momentum across its segments, especially Laboratory and Industrial due to the favourable demand environment. Notably, these two segments remains the key catalyst.

Further, positive contributions from acquisitions also continue to aid the top line in the to-be-reported quarter.

The company’s robust Laboratory segment has been gaining from the company’s portfolio strength and the Biotix acquisition. Moreover, the buyout will aid the performance of Laboratory business in Americas which in turn will help the to-be reported quarter.

Further, Mettler-Toledo’s strengthening core industrial and product inspection offerings are anticipated to continue aiding the performance of its Industrial segment in the quarter under review.

Additionally, the company remains confident of its growth strategies that include productivity and margin initiatives. The company’s continued investments in Spinnaker sales, field force, product portfolio expansion and marketing programs are likely to drive the top and bottom lines in the first quarter.

Moreover, the company’s stern drive productivity programs remain major positives.

However, its sluggish Retail segment remains a concern. Further, the U.S.-China trade war regarding tariff remains a major headwind for the company’s export-import activities in China.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mettler-Toledo has a Zacks Rank #2 but an Earnings ESP of 0.00%, which makes the surprise prediction difficult.

Stocks That Warrant a Look

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming release.

MongoDB, Inc. (MDB - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2.

TripAdvisor, Inc. (TRIP - Free Report) an Earnings ESP of +15.51% and a Zacks Rank #3.

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