The 10-second takeaway
For the quarter ended March 30 (Q1), Middleby beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins dropped across the board.
Middleby booked revenue of $327.5 million. The five analysts polled by S&P Capital IQ hoped for a top line of $308.1 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $228.8 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 $1.39. The six earnings estimates compiled by S&P Capital IQ averaged $1.29 per share. GAAP EPS of $1.39 for Q1 were 16% higher than the prior-year quarter's $1.20 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 37.0%, 120 basis points worse than the prior-year quarter. Operating margin was 12.9%, 310 basis points worse than the prior-year quarter. Net margin was 7.9%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $344.3 million. On the bottom line, the average EPS estimate is $1.79.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $7.30.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Middleby is hold, with an average price target of $156.40.
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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. The Motley Fool recommends Middleby. The Motley Fool owns shares of 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.