Mettler-Toledo (MTD) Q1 Earnings Lag Estimates, Revenues Top

 | May 03, 2018 09:18PM ET

Mettler-Toledo International, Inc. (NYSE:MTD) reported first-quarter 2018 adjusted earnings of $3.74 per share, which missed the Zacks Consensus Estimate by 2 cents but came ahead of the management’s guided range of $3.65-$3.70 per share. The figure increased 12% on a year-over-year basis but decreased 37.3% sequentially.

Net sales of $660.8 million beat the Zacks Consensus Estimate of $651.1 million and were up 11.1% year over year but down 15.1% from the previous quarter. In local currency, sales grew 5%, which was in line with the management’s expectation of 5% growth. Further, favorable exchange rate contributed 6% to the year-over-year growth

The top-line growth was driven by robust performance of Laboratory business across all the geographies and benefits from Biotix acquisition. Also, Mettler-Toledo performed well in China which propelled the growth further.

Coming to the price performance, shares of Mettler-Toledo have returned 5.7% over a year, underperforming the Mettler-Toledo International, Inc. Quote

Balance Sheet and Cash Flow

As of Mar 31, 2018, the company’s cash and cash equivalents balance was $98.9 million compared with $148.7 million as of Dec 31, 2017. Long-term debt was $978.7 million which increased from $960.1 million in the previous quarter.

Mettler-Toledo generated $76.6 million of cash from operating activities, up from $67.6 million in the prior year quarter. Free cash flow was $56.5 million compared with $59.2 million in the year-ago quarter.

Guidance

For second-quarter 2018, Mettler-Toledo expects sales growth of 6% in local currency. The Zacks Consensus Estimate for sales is currently pegged at $714.9 million.

Adjusted earnings are expected in the range of $4.55-$4.60 per share, up 16-17% year over year. The Zacks Consensus Estimate is pegged at $4.55 per share.

The company expects favorable economic condition will continue to benefit the company’s position in Americas, Europe and China as well. Additionally, Mettler-Toledo expects product inspection and food retail business to perform well in the second quarter. Moreover, improving Spinnaker sales and marketing programs are likely to drive both top line and bottom line of the company.

For 2018, the company expects sales to grow by 6% at local currency. The Zacks Consensus Estimate is projected at $2.98 billion.

Adjusted earnings are anticipated to lie in a range of $20.10-$20.25 per share, up from the previous guided range of $19.95-$20.15. The Zacks Consensus Estimate is projected at $20.24.

Further, Mettler-Toledo expects free cash flow of $450 million and share repurchase worth $475 million in 2018.

Zacks Rank and Other Stocks to Consider

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Mettler-Toledo currently carries a Zacks Rank #2 (Buy)

Some other top-ranked stocks in the broader technology sector are Micron Technology (NASDAQ:MU) , Nice (NASDAQ:NICE) and Agilent Technologies (NYSE:A) . While Micron Technology and Nice sport a Zacks Rank #1 (Strong Buy), Agilent Technologies carries a Zacks Rank #2. You can see Original post

Written By: Zacks Investment Research

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