Middleby reported earnings of $1.05 per share for third-quarter
2014, up roughly 43.8% from the year-ago quarter and surpassing the
Zacks Consensus Estimate of $0.86. Revenues grew 12.3% year over
year to $404.3 million but missed the Zacks Consensus Estimate of
$409.0 million. Middleby is trying to improve its business through
sustainable measures and inorganic growth strategies. However, the
company's trade is subjected to currency and exchange rate
fluctuations, as well as input price volatilities. Furthermore, the
company's margins in the upcoming quarters might be adversely
affected by the new long-term investment programs. Based on these
factors, we prefer to maintain our Neutral recommendation on the
Elgin, IL-based The Middleby Corporation (MIDD) provides
cooking, warming, food preparation and packaging equipment to
commercial, industrial processing and residential markets. Formerly
known as Oven Company, it was acquired by TMC Industries Ltd. in
1983. Post the acquisition, the company's name was changed to
Middleby Corporation in 1985. The company operates in three main
Commercial Foodservice Equipment Group: This segment
manufactures cooking equipment for restaurants and institutional
kitchens. The products include conveyor ovens, proofing ovens,
speed cooking ovens and induction cooking equipment. The equipment
in this segment are sold under brands like Combi , Lang , MPC ,
PrefectFry , CookTek , Southbend and Wells .
Food Processing Equipment Group: This segment manufactures
equipment for the food processing industry. It offers a variety of
products including batch ovens, processing ovens, defrosting and
packaging equipment among others. The products are sold under
various brands such as Auto-Bake , Alkar , Cozzini and RapidPak
Residential Kitchen Equipment Group: This segment manufactures
equipment for the residential market, recording the revenues for
Viking and Brigade. It offers ovens, dishwashers, cooktops,
microwaves and other outdoor equipment.
This segment was formed after the company acquired Viking range
in December last year.
The Middleby Corporation (MIDD): Read the Full
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