Why The Middleby Corporation Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of food equipment company The Middleby Corporation (NASDAQ: MIDD  ) surged 13% today after its quarterly results topped Wall Street expectations.

So what: The stock has soared during the past year on better-than-expected growth, and today's Q4 results -- both EPS and revenue surged 29% -- only reinforce that positive trend. In fact, gross margin during the quarter increased 110 basis points to 39.9%, suggesting that Middleby's competitive position is strengthening in the growth process.

Now what: Don't expect Middleby's operating momentum to slow anytime soon. "We continued to make investments in sales and service capabilities in international markets such as Brazil, India, and the Mid-East and realized the benefits of these continuing investments, with strong revenue growth in overseas markets," said Chairman and CEO Selim Bassoul. "Our broad portfolio of innovative products combined with our strong global sales and service infrastructure, positions us extremely well as our customers look for partners to provide equipment solutions to support their restaurant operations around the world." Of course, with the stock now up a whopping 115% over its 52-week lows, and trading at a forward P/E of 30, I'd be cautious about getting too caught up in the excitement.

More compelling ways to grow
They said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2855388, ~/Articles/ArticleHandler.aspx, 10/21/2014 2:28:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement