Middleby
Fourth-quarter net income jumped 52.9% to $11.1 million, or $1.34 per share. Sales increased 27.8% to $98.3 million. (Here's the full rundown of Middleby's fourth-quarter financial results.)
Anybody who follows Middleby knows that the stock skyrocketed to a new 52-week high last Friday after reporting its latest numbers. (Tom Gardner, who recommended Middleby to Motley Fool Hidden Gems subscribers, commented on Middleby's outlook as well.) Of course, investors are more concerned about its future, a topic on which the company's conference call shed considerable light.
Middleby has focused on the commercial oven market, competing with rivals like TurboChef
The company's conference call discussed in greater detail its pending purchase of Jade Products from Whirlpool's
It's perhaps most interesting, that while Jade provides commercial ovens, it will also allow Middleby to enter the residential oven market, which makes up about 15% of Jade's revenues.
Although Middleby Chairman and CEO Selim Bassoul said his company's not trying to be the largest player in residential ovens, he did describe the positives of trying to appeal to the high end of this market with sleek stainless-steel models. Bassoul said that Middleby would like to emulate its success in the commercial market by setting trends in residential pricing and innovation.
Middleby has a history of acquiring companies and improving their profits, and the Jade acquisition will expose it to an interesting new market segment. Given Middleby's success thus far and its forward-looking plans, the long term still sounds bright.
For more on Middleby, see the following Foolish articles:
- Here are Tom Gardner's comments on Middleby's soaring stock price.
- Drill down into Middleby's fourth-quarter numbers.
- Revisit Middleby's third quarter as well.
Middleby is a Motley Fool Hidden Gems recommendation and a six-bagger to date. To find more small-cap investing ideas, click here for a 30-day free trial.
Alyce Lomax does not own shares of any of the companies mentioned.