On Mar 7, 2014, we issued an updated research report on
The Middleby Corporation
). The company delivered robust earnings per share in the fourth
quarter of 2013, which increased 29% year over year to $2.62.
Quarterly revenues of $377.4 million were also up 29% year over
year. Margins improved significantly in the reported quarter, led
by a healthy top-line growth.
The company is hugely benefiting from accretive acquisitions.
In the reported quarter, Middleby acquired Celfrost, Automatic
Bar Controls and Wunder-Bar, which accounted for 20.8% of the
sales growth. Subsequent to the quarter end, Middleby also
acquired Market Forge to extend its footprint in the steam
The company is foraying into markets like cold-side brands,
steam cooking and beverages while growing in its hot-side brands.
Middleby is also gaining tractions in international markets
through product launches.
In the reported quarter, the company's international revenues
rose 15% year over year. The company is expected to witness
higher overseas demand as new customers are planning to develop
more operations in the international arena.
The strong results and guidance led to positive estimate
revisions for 2014 and 2015 over the past 30 days. This led to a
3.5% increase in the Zacks Consensus Estimate for 2014, which is
now pegged at $10.17. The Zacks Consensus Estimate for 2015 is up
16.6% over the same time frame and now stands at $11.95.
Key Picks from the Sector
Middleby currently carries a Zacks Rank #2 (Buy). Other stocks
worth a watch in the industry include
Sun Hydraulics Corp.
). While Kadant and Sun Hydraulics Corp. sport a Zacks Rank #1
(Strong Buy) each, Graco has the same Zacks Rank as Middleby.
GRACO INC (GGG): Free Stock Analysis Report
KADANT INC (KAI): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
SUN HYDRAULICS (SNHY): Free Stock Analysis
To read this article on Zacks.com click here.