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Middleby (MIDD) Q1 Earnings Beat on Sales Growth, Up Y/Y

Machinery company The Middleby CorporationMIDD impressed its investors with better-than-expected results for first-quarter 2016. The company's earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 84 cents by 14.3%. Also, the bottom line surged 43.3% from the year-ago tally of 67 cents.

The Middleby Corporation - Earnings Surprise | FindTheBest

In terms of Middleby's top-line performance, net sales increased 27% year over year to $516.4 million. The year-over-year improvement was driven by organic sales growth of 2.3% and acquisition gains of 26.2%, partially offset by 1.6% negative impact from foreign currency translation. Moreover, the top line beat the Zacks Consensus Estimate of $515 million.

Segmental Details

Middleby reports its net sales under three heads/segments. The segmental results are briefly discussed below:

Revenues from the Commercial Foodservice Equipment Group totaled $279 million, up 6.4% year over year. On a constant currency basis, the segment's sales improved 7.5% year over year.

Revenues from the Food Processing Equipment Group grew 12.6% year over year to $78.6 million. On a constant currency basis, the segment's sales increased 5.9% year over year.

Revenues from the Residential Kitchen Equipment Group totaled $158.7 million, up 112.7% year over year. On a constant currency basis, the segment's sales improved 19.2% year over year.

Margins

In the quarter, Middleby's cost of sales increased 28.3% year over year, representing 61.9% of net sales compared with 61.2% in the year-ago quarter. Gross margin inched down 70 basis points (bps) year over year to 38.1%. Selling and distribution expenses, as a percentage of revenues, were 10.4%. General and administrative expenses were 10.9%.

Operating income increased 29.7% year over year, while the operating margin was at 16.7%.

Balance Sheet

Exiting first-quarter 2016, Middleby had cash and cash equivalents of $55.7 million, slightly above $55.5 million in the preceding quarter. Long-term debt decreased 3.8% sequentially to $706.1 million.

With a market capitalization of $6.3 billion, The Middleby Corporation currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the machinery industry include Gorman-Rupp Co. GRC , Luxfer Holdings PLC LXFR and Altra Industrial Motion Corp. AIMC . While both Gorman-Rupp and Luxfer Holdings sport a Zacks Rank #1 (Strong Buy), Altra Industrial Motion holds a Zacks Rank #2 (Buy).

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MIDDLEBY CORP (MIDD): Free Stock Analysis Report

ALTRA INDUS MOT (AIMC): Free Stock Analysis Report

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LUXFER HOLDINGS (LXFR): 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.


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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