The Middleby Corporation
) reported impressive results for the third quarter of 2013.
Earnings per share came in at $2.18, up roughly 36.3% from $1.60
in the year-ago quarter. Earnings also surpassed the Zacks
Consensus Estimate of $1.90 by 14.7%. The increase in earnings
was due to improved revenues and margins.
: Revenues generated by Middleby increased 39.7% year over year
to $360.0 million, exceeding the Zacks Consensus Estimate of
$348.0 million. This includes revenues from recent acquisitions
which represents $71.8 million or 27.9% of sales.
In the reported quarter, revenues from the
Commercial Foodservice Equipment Group
rose 16.2% year over year while an increase of 11.7% was recorded
excluding the impact of the acquisition of Nieco.
Revenues from the
Food Processing Equipment Group
improved 20.5% year over year in the third quarter, aided by the
acquisition of Stewart Systems in Sep 2012. Excluding this,
revenues grew 12.2% year over year.
Residential Kitchen Equipment Group
's revenues were $58.0 million this quarter.
: Middleby reported a 39.0% year-over-year increase in its cost
of sales to $218.6 million, which represented 60.7% of total
revenue. Gross margin increased from 39.0% to 39.3%, due to the
increase in sales.
Selling and distribution expenses, as a percentage of
revenues, increased 152 basis points (bps) year over year to
11.6%, while general and administrative expenses declined 156 bps
to 8.94% of total revenue. Operating profit surged 42.4% year
over year to $67.5 million, against $47.4 million recorded in the
third quarter of 2012.
: Middleby Corporation had cash and cash equivalents balance of
approximately $29.4 million at the end of third-quarter 2013,
versus $34.4 million in the preceding quarter. Long-term debt was
$536.6 million, compared with $617.4 million in the end of the
second quarter of 2013.
: The company anticipates continuing inorganic growth in coming
quarters. The integration of Viking is on track, while the
recently completed acquisition of Celfrost will increase the
company's presence in India. Additionally, increased demand for
pre-cooked and pre-processed foods in emerging markets is likely
to work in Middleby's favor.
Other Stocks to Consider
Middleby currently carries a Zacks Rank #3 (Hold). Other
stocks worth watching out for in the industry include
DXP Enterprises, Inc.
). While Xylem carries a Zacks Rank #1 (Strong Buy), DXP
Enterprises and Flowserve hold a Zacks Rank #2 (Buy).
DXP ENTERPRISES (DXPE): Free Stock Analysis
FLOWSERVE CORP (FLS): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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