Mettler-Toledo (MTD) Q4 Earnings & Revenues Beat Estimates
Zacks Investment Research | Feb 07, 2019 09:24PM ET
Mettler-Toledo International, Inc. (NYSE:MTD) delivered fourth-quarter 2018 adjusted earnings of $6.85 per share, beating the Zacks Consensus Estimate by 11 cents and also came ahead of management’s guided range of $6.72-$6.77 per share. The figure increased 15% on a year-over-year basis and 33.8% sequentially.
Net sales of $817.92 million were up 5.1% year over year and advanced 11.3% from the previous quarter. In local currency, sales grew 8% from the year-ago quarter, exceeding management’s expectation of 6% growth. Further, the figure 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.
Coming to the price performance, shares of Mettler-Toledo have returned 7.9% over a year, underperforming the Mettler-Toledo International, Inc. Quote
Operating Results
Gross margin was 58.4%, contracting 20 basis points (bps) year over year. This was primarily due to tariff mix, and costs related to new product introduction and product inspection business.
Research & development (R&D) expenses were $36.2 million, up 12% from the year-ago quarter. Selling, general & administrative (SG&A) expenses decreased 2.4% year over year to $201.6 million.
Adjusted operating margin was 29.3%, expanding 140 bps from the prior-year quarter.
Balance Sheet and Cash Flow
As of Dec 31, 2018, the company’s cash and cash equivalents balance was $178.1 million, up from $137.4 million as of Sep 30, 2018.
Long-term debt was $985.02 million, decreasing from $988.9 millionin the previous quarter.
Mettler-Toledo generated $198.6 million of cash from operating activities, up from $149.7million in the prior quarter. Free cash flow was $157.2 million compared with $121.3 million in the third quarter.
Guidance
For first-quarter 2019, Mettler-Toledo expects sales growth of 5.5% in local currency. The Zacks Consensus Estimate for sales is pegged at $676.62 million.
Adjusted earnings are anticipated in the range of $4-$4.05 per share, reflecting year-over-year growth of 7-8%. The Zacks Consensus Estimate for earnings is pegged at $3.98 per share.
For 2019, the company expects sales to grow 5% in local currency. The Zacks Consensus Estimate is pegged at $3.03 billion.
Adjusted earnings are expected to be in the range of $22.5-$22.7 per share. The Zacks Consensus Estimate is pegged at $22.49 per share.
Zacks Rank and Stocks to Consider
Mettler-Toledo carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are TripAdvisor (NASDAQ:TRIP) , Upland Software (NASDAQ:UPLD) and Wayfair (NYSE:W) . While TripAdvisor sports a Zacks Rank #1 (Strong Buy), Upland Software and Wayfair carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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