The Middleby Corporation
) reported improved year-over-year results for the second quarter
of 2014. Earnings came in at 85 cents per share, up roughly 26.9%
from 67 cents in the year-ago quarter, driven by improved revenues
and margins. Moreover, earnings surpassed the Zacks Consensus
Estimate of 78 cents by 9%.
: Revenues grew 16.8% year over year to $424.8 million, beating the
Zacks Consensus Estimate of $410.0 million. The rise in sales was
primarily attributable to the company's inorganic growth. Excluding
the acquisitions, sales increased 11% year over year.
Revenues from the Commercial Foodservice Equipment Group rose
18.3% year over year to $263.9 million. However, excluding the
impact of Celfrost, Wunder-Bar and Market Forge acquisitions, the
same increased 10.2%.
Revenues from the Food Processing Equipment Group rose 9.8% year
over year to $89.9 million in the reported quarter. Excluding the
acquisitions, sales increased 6.2% year over year.
The Residential Kitchen Equipment Group's revenues were $70.9
million, recording a hike of 20.6% year over year.
: Middleby's cost of sales in the quarter increased 13.8% year over
year to $258.6 million, representing 60.9% of total revenue. Owing
to higher sales volume and improvements in the Viking business,
gross margin increased to 39.1% from 37.5%.
Selling and distribution expenses, as a percentage of revenues,
increased 70 basis points (bps) year over year to 11.3%, while
general and administrative expenses decreased 30 bps to 10% of
total revenue. Operating profit rose 25.6% year over year to $75.7
million, against $60.3 million recorded in the prior-year
: Middleby Corporation had cash and cash equivalents of
approximately $32.3 million at the end of second-quarter 2014,
versus $39.1 million in the preceding quarter. Long-term debt was
$584.5 million, compared with $648.5 million at the end of
: Middleby hopes to record higher sales on the back of organic as
well as inorganic growth going forward. The company intends to
spend on the marketing of new products as well as on the training
of dealer sales organization. Middleby also expects to benefit from
the Viking acquisition in the coming quarters.
Other Stocks to Consider
Middleby currently carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the industry include Blount International
), The Babcock & Wilcox Company (
) and DXP Enterprises, Inc. (
). While both Blount International and The Babcock & Wilcox
Company sport a Zacks Rank #1 (Strong Buy), DXP Enterprises
holds a Zacks Rank #2 (Buy).
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