On May 28, 2013, we reaffirmed our Outperform recommendation
The Middleby Corporation
) based on a strong first quarter 2013 performance.
Why the Retention?
Middleby reported impressive results for the first quarter
2013, with earnings per share of $1.65, a year-over-year increase
of 37.5%. The company's earnings beat the Zacks Consensus
Estimate of $1.30 by 26.9%, primarily led by the Viking
acquisition, completed in late December last year.
Middleby generated revenue of $327.5 million, increasing 43.1%
year over year. Revenue surpassed the Zacks Consensus Estimate of
$314.0 million. The increase in revenue was primarily led by a
contribution from the Viking range as well as other
Viking is expected to contribute significantly in the coming
quarters as well. Moreover, in the first quarter of 2013,
Middleby witnessed a significant 20% hike in revenues from Latin
America, the Middle East and Asia. Management also expects that
the above regions will continue to show signs of prosperity along
with several other emerging markets.
Middleby expects its "Kitchen of the Future" innovation to be
an instant hit with its customers. The company expects to have
greater number of customers using this technology. Along with
this, the induction technology of the company is gaining
momentum, thereby increasing revenue generation of the company.
After a successful launch of 12 products in 2012, the company is
expected to introduce 13 more products in 2013.
Since the announcement of the results, most of the estimates
have been revised upwards for 2013 and 2014. The current Zacks
Consensus Estimate for 2013 rests at $7.55, an increase of 5.2%
over the last 30 days. For 2014, the current estimate increased
by 4.3% to $8.88 per share, over the same time frame.
Other Stocks to Consider
Middleby currently carries a Zacks Rank #2 (Buy). Other stocks
worth a watch in the industry are
Tri-Tech Holding, Inc.
), both carrying a Zacks Rank #1 (Strong Buy); while,
) holds a Zacks Rank #2 (Buy).
COLFAX CORP (CFX): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
TRI-TECH HOLDNG (TRIT): Free Stock Analysis
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