Yahoo Finance Middleby (MIDD) Q4 Earnings & Revenues Beat, Increase Y/Y
The Middleby Corporation MIDD reported fourth-quarter 2022 adjusted earnings (excluding 12 cents from non-recurring items) of $2.57 per share, which beat the Zacks Consensus Estimate of $2.46. The bottom line increased 21.8% year over year on higher sales.
Net sales of $1,031.7 million surpassed the Zacks Consensus Estimate of $1,012 million. The top line jumped 19.1% year over year. Organic revenues in the reported quarter increased 14% year over year due to higher shipments, thanks to the benefits of investments to increase production throughput. Acquired assets boosted sales by 8.2%, while movements in foreign currencies had a negative impact of 3.1%.
Segmental Results
Sales from the Commercial Foodservice Equipment Group (representing 61.4% of the net sales) were $633.27 million, up 19.2% year over year. Organic sales in the reported quarter increased 19.4%. Buyouts boosted sales by 2.2%, while movements in foreign currencies had a headwind of 2.4%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Sales from the Residential Kitchen Equipment Group (representing 20.9% of the reported quarter’s net sales) totaled $216.07 million, up 3.1% year over year. Organic sales in the quarter under review decreased 8.7%. Buyouts had a positive impact of 16.4%, whereas movements in foreign currencies had a negative impact of 4.6%.
Sales from the Food Processing Equipment Group (representing 17.7% of the reported net sales) summed $182.36 million, up 45.2% year over year. Organic sales in the quarter jumped 29.1%, while movements in foreign currencies had a negative impact of 3.5%. Acquisitions boosted sales by 19.7%.
Margin Profile
In the fourth quarter, Middleby’s cost of sales increased 16.5% year over year to $641.64 million. Gross profit expanded 23.6% to $641.64 million. Gross margin increased to 37.8% from 36.4% in the year-ago quarter.
Selling, general and administrative expenses increased 16.6% year over year to $200.48 million. Operating income in the fourth quarter rose 35.7% year over year to $188.11 million. Operating margin increased to 18.2% from 16% in the year-ago period.
Balance Sheet and Cash Flow
Exiting the fourth quarter, Middleby had cash and cash equivalents of $162 million compared with $180.36 million at the end of December 2021. Long-term debt was $2.68 billion at the end of the fourth quarter compared with $2.39 billion at the end of 2021.
In 2022, MIDD, carrying a Zacks Rank #2 (Buy), generated net cash of $332.55 million from operating activities compared with $423.40 million at the end of the year-ago period. Capital expenditure (net of sale proceeds) totaled $67.29 million compared with $40.26 million at the end of 2022. Free cash flow was $265.26 million in 2022, down 30.8% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Stocks
Within the broader Industrial Products sector, the following companies have recently reported earnings numbers.
Parker-Hannifin Corporation PH, carrying a Zacks Rank #2, reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Parker-Hannifin’s total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Xylem XYL, carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2022 adjusted earnings (excluding 10 cents from non-recurring items) of 92 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year.
Xylem’s revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.
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