The Middleby Corporation
) reported improved year-over-year results for the first quarter of
2014. Earnings came in at $1.78 per share, up roughly 28.1% from
$1.39 per share in the year-ago quarter. The increase in earnings
was due to improved revenues and margins. However, earnings missed
the Zacks Consensus Estimate of $2.07 by 14.0%.
: Revenues grew 13.8% year over year to $372.5 million, beating the
Zacks Consensus Estimate of $361.0 million. The rise in sales
primarily resulted from the company's inorganic growth. Excluding
the acquisitions, sales increased 8.0% year over year.
Revenues from the Commercial Foodservice Equipment Group rose
18.6% year over year. However, the same increased 9.0% excluding
the impact of the acquisitions of Celfrost, Wunder-Bar and Market
Revenues from the Food Processing Equipment Group climbed 5.9%
year over year in the reported quarter.
The Residential Kitchen Equipment Group's revenues were $62.8
million, recording a hike of 7.0% year over year.
: Middleby's cost of sales in the quarter increased 11.3% year over
year to $229.5 million, representing 61.6% of total revenue. Owing
to improvement in the Viking margins, gross margin increased
nominally to 38.4% from 37.0%.
Selling and distribution expenses, as a percentage of revenues,
increased 160 basis points (bps) year over year to 12.6%, while
general and administrative expenses decreased 235 bps to 10.8% of
total revenue. Operating profit rose 32.6% year over year to $55.9
million, against $42.2 million recorded in the prior-year
: Middleby Corporation had cash and cash equivalents balance of
approximately $39.1 million at the end of first quarter 2014 versus
$36.9 million in the preceding quarter. Long-term debt was $648.5
million, compared with $570.2 million at the end of fourth quarter
: Middleby is optimistic of recording higher sales on the back of
organic as well as inorganic growth. The company is launching over
50 products, to be available by the end of this year. Additionally,
Middleby anticipates acquisitions of Market Forge and Processing
Equipment Solutions to enhance the company's results in the coming
Other Stocks to Consider
Middleby currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks to watch out for in the industry include
The Babcock & Wilcox Company
Broadwind Energy, Inc.
). While Graco sports a Zacks Rank #1 (Strong Buy), both The
Babcock & Wilcox Company and Broadwind Energy hold a Zacks Rank
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