The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Middleby beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantl,y and GAAP earnings per share grew significantly.
Margins grew across the board.
Middleby notched revenue of $243.8 million. The five analysts polled by S&P Capital IQ expected revenue of $233.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $207.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.87. The five earnings estimates compiled by S&P Capital IQ averaged $1.29 per share. GAAP EPS of $1.87 for Q4 were 65% higher than the prior-year quarter's $1.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.9%, 80 basis points better than the prior-year quarter. Operating margin was 18.4%, 90 basis points better than the prior-year quarter. Net margin was 14.2%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $217.0 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $965.1 million. The average EPS estimate is $5.57.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Middleby is outperform, with an average price target of $104.50.
Over the decades, small-cap stocks like Middleby have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Middleby to My Watchlist.