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Mettler-Toledo (MTD) to Post Q2 Earnings: What's in Store?

Mettler-Toledo International, Inc. MTD is scheduled to report second-quarter 2020 results on Jul 30. In the last reported quarter, the company delivered an earnings surprise of 0.5%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering average surprise of 1.03%.

Second-Quarter Expectations

Mettler-Toledo expects anticipates sales to decline between 8% and 12% on a year-over-year basis in local currency. The Zacks Consensus Estimate for sales is pegged at $647.43 million.

Adjusted earnings are anticipated in the range of $4.05-$4.45 per share. The Zacks Consensus Estimate for earnings is pegged at $4.27 per share.

MettlerToledo International, Inc. Price and EPS Surprise

MettlerToledo International, Inc. Price and EPS Surprise

MettlerToledo International, Inc. price-eps-surprise | MettlerToledo International, Inc. Quote

Performance in the Last Reported Quarter

Mettler-Toledo reported second-quarter 2020 adjusted earnings of $4 per share, beating the Zacks Consensus Estimate by 0.5%.

Revenues of $649.2 million missed the Zacks Consensus Estimate of $650 million.

Let’s see how things have shaped up for this announcement.

Key Factors to Consider

The company’s strong product portfolio, which includes robust analytical instruments, balances and auto-chem, is expected to have driven sales in the to-be-reported quarter.

Further, strength across Laboratory and Industrial segments is anticipated to have contributed to its second-quarter performance.

The company’s strong momentum across pharmaceutical and life sciences markets are expected to have driven the performance in the quarter under review. Further, investments in field force, Spinnaker sales and marketing programs may get reflected in the results for the quarter to be reported. Further, its robust automated chemistry solutions are expected to have aided Mettler-Toledo’s momentum across the drug process development field in the quarter under review.

The Zacks Consensus Estimate for the Laboratory segment sales is pegged at $327 million, indicating a decline of 13.9% from the year-ago reported figure.

Mettler-Toledo’s solid momentum across core industrial business is likely to have driven the Industrial Instruments’ segment sales in the second quarter amid sluggishness in the product inspection business.

The Zacks Consensus Estimate for the Industrial segment sales is pegged at $278 million, suggesting a decline of 8.3% from the prior-year quarter.

Nonetheless, the company’s cost-containment measures and declining discretionary spending are expected to have aided the segment’s performance in the to-be-reported quarter.

However, lab demand is expected to have been weak in the second quarter as labs were not fully operational due to work-from-home restrictions. Also, softness in the Mettler-Toledo’s retail segment — which comprises food retail business — might have acted as a headwind in the second quarter. The Zacks Consensus Estimate for Retail segment sales is pegged at $35 million, suggesting a decline of 28.1% from the prior-year quarter.

What Our Model Says

Other Stocks to Consider

Here are some other companies, which also have the right combination of elements to post an earnings beat in the quarter to be reported:

NXP Semiconductors N.V. NXPI has an Earnings ESP of +11.90% and holds a Zacks Rank of 2.

Etsy, Inc. ETSY has an Earnings ESP of +1.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PerkinElmer, Inc. PKI has an Earnings ESP of +22.13% and holds a Zacks Rank of 1.

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PerkinElmer, Inc. (PKI): Free Stock Analysis Report
 
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MettlerToledo International, Inc. (MTD): Free Stock Analysis Report
 
Etsy, Inc. (ETSY): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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