Kitchen product manufacturer Middleby (NYSE:MIDD) will be reporting earnings this Wednesday morning. Here’s what investors should know.
Middleby missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $906.6 million, down 2.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ organic revenue estimates and a miss of analysts’ EBITDA estimates.
Is Middleby a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Middleby’s revenue to decline 1.9% year on year to $972.2 million, improving from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.23 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Middleby has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Middleby’s peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lincoln Electric delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 5.1%, and Snap-on reported flat revenue, topping estimates by 2.1%. Lincoln Electric traded up 7.8% following the results while Snap-on was also up 7.4%.
Read our full analysis of Lincoln Electric’s results here and Snap-on’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Middleby is down 2.5% during the same time and is heading into earnings with an average analyst price target of $165 (compared to the current share price of $141.81).
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