Mettler-Toledo (MTD) Q3 Earnings Top Estimates, Revenues Lag
Zacks Investment Research | Nov 09, 2018 07:32AM ET
Mettler-Toledo International, Inc. (NYSE:MTD) delivered third-quarter 2018 adjusted earnings of $5.12 per share, beating the Zacks Consensus Estimate by 13 cents and also came ahead of management’s guided range of $4.97-$5.02 per share. The figure increased 17.4% on a year-over-year basis and 10.1% sequentially.
Net sales of $734.85 million were up 5.1% year over year and 1.8% from the previous quarter. In local currency, sales grew 7% from the year-ago quarter, exceeding management’s expectation of 6% growth.
The robust performance of Laboratory business drove top-line growth. Further, strengthening Food business also contributed well. Further, Mettler-Toledo performed well in China which propelled growth.
However, revenues missed the Zacks Consensus Estimate of $739.76 million.
Nevertheless, the company remains confident on its growth strategies that include productivity and margin initiatives. Moreover, Mettler-Toledo’s continued investments in product portfolio expansion, field force, Spinnaker sales and marketing programs are expected to continue benefiting its business growth.
Coming to the price performance, shares of Mettler-Toledo have lost 3.9% on a year-to-date basis compared with the Mettler-Toledo International, Inc. Quote
Balance Sheet and Cash Flow
As of Sep 30, 2018, the company’s cash and cash equivalents balance was $137.4 million compared with $183.2 million as of Jun 30, 2018.
Long-term debt was $988.9 million, decreasing from $1.02 billion in the previous quarter.
Mettler-Toledo generated $149.8 million of cash from operating activities, up from $140.2 million in the prior quarter. Free cash flow was $121.3 million compared with $120.8 million in the second quarter.
Guidance
For fourth-quarter 2018, Mettler-Toledo expects sales growth of 6% in local currency. The Zacks Consensus Estimate for sales is pegged at $823.84 million.
Adjusted earnings are expected in the range of $6.72-$6.77 per share, up 13% year over year. The Zacks Consensus Estimate for earnings is projected at $6.81 per share.
However, management assumes that high tariff costs and unfavourable currency fluctuations are likely to bring 5% negative impact on earnings growth.
For 2018, the company continues to expect sales to grow 6% at local currency. The Zacks Consensus Estimate is projected at $2.95 billion.
Adjusted earnings are expected to be in the range of $20.20-$20.25 per share. The Zacks Consensus Estimate is pegged at $20.18 per share.
Zacks Rank and Stocks to Consider
Mettler-Toledo currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are Twitter, Inc. (NYSE:TWTR) , Intel Corporation (NASDAQ:INTC) and Adobe Systems Incorporated (NASDAQ:ADBE) . While Twitter and Intel sport a Zacks Rank #1 (Strong Buy), Adobe Systems carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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