A Preview Of Middleby's Earnings

Middleby MIDD will release its quarterly earnings report on Thursday, 2024-10-31. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Middleby to report an earnings per share (EPS) of $2.49.

The market awaits Middleby's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company's EPS beat by $0.08 in the last quarter, leading to a 2.52% drop in the share price on the following day.

Here's a look at Middleby's past performance and the resulting price change:

Analysts' Perspectives on Middleby

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Middleby.

A total of 4 analyst ratings have been received for Middleby, with the consensus rating being Buy. The average one-year price target stands at $154.25, suggesting a potential 11.78% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of ESAB, Flowserve and Watts Water Technologies, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for ESAB, with an average 1-year price target of $122.86, implying a potential 10.97% downside.
• The consensus outlook from analysts is an Buy trajectory for Flowserve, with an average 1-year price target of $60.89, indicating a potential 55.88% downside.
• The consensus among analysts is an Neutral trajectory for Watts Water Technologies, with an average 1-year price target of $200.5, indicating a potential 45.29% upside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for ESAB, Flowserve and Watts Water Technologies, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Middleby ranks at the bottom for Revenue Growth with a negative rate, while its peers show positive growth rates. In terms of Gross Profit, Middleby is at the top among its peers. However, Middleby has the lowest Return on Equity compared to its peers, indicating lower profitability relative to equity.

Delving into Middleby's Background

The Middleby Corp is engaged in designing, manufacturing, marketing, distribution and service of a broad line of foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment used in the residential market. The company conducts its business through three principal business segments namely the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The firm derives majority revenue from Commercial Foodservice Equipment Group segment.

Middleby: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Middleby's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -4.66% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Middleby's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 11.64%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Middleby's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.43%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Middleby's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.65%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.71, Middleby faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Middleby visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.