Middleby (MIDD) Q3 Earnings Miss Estimates, View Encouraging
Zacks Investment Research | Nov 08, 2018 09:18PM ET
Machinery behemoth The Middleby Corporation (NASDAQ:MIDD) reported weaker-than-expected results for third-quarter 2018. However, the quarterly results of the company improved on a year-over-year basis. This Zacks Rank #2 (Buy) stock valued $116.53 per share as of Nov 8, nearly flat since the after-market release of its third-quarter earnings on Nov 7.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.56 per share, up 14.7% year over year. However, the bottom-line figure missed the Zacks Consensus Estimate by a penny. The company noted that restructuring expenses and higher interest costs weighed over quarterly earnings. Notably, including the impact of these expenses, Middleby’s adjusted earnings remained flat year over year at $1.31 per share in the third quarter.
Net sales in the reported quarter came in at $$713.3 million, up 20.3% year over year. The upswing was driven by the benefits secured from newly-made acquisitions and the Accounting Standards Codification 606 adoption. However, we notice that unfavorable foreign currency-translation impact hurt the company’s revenues in the reported quarter.
Middleby’s third-quarter revenues missed the Zacks Consensus Estimate of $727 million.
Segmental Break-Up
Net sales of the Commercial Foodservice Equipment Group surged 32.9% year over year to $471.6 million in the quarter under review. The Residential Kitchen Equipment Group’s revenues inched up 1.4% year over year to $153.5 million. The Food Processing Equipment Group’s revenues improved 1.6% year over year to $88.2 million.
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