The 10-second takeaway
For the quarter ended March 31 (Q1), Middleby beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins dropped across the board.
Middleby chalked up revenue of $228.8 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $217.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $182.6 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 $1.20. The five earnings estimates compiled by S&P Capital IQ anticipated $1.19 per share. GAAP EPS of $1.20 for Q1 were 24% higher than the prior-year quarter's $0.97 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 38.2%, 110 basis points worse than the prior-year quarter. Operating margin was 16.0%, 120 basis points worse than the prior-year quarter. Net margin was 9.7%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $245.5 million. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $985.3 million. The average EPS estimate is $5.87.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Middleby is outperform, with an average price target of $118.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended shorting Middleby. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.