Latest news with #Middleby
Yahoo
11-07-2025
- Business
- Yahoo
The Top 5 Analyst Questions From Middleby's Q1 Earnings Call
Middleby's first quarter saw a positive market reaction despite revenue coming in below Wall Street's expectations. Management attributed the results to strong cash flow, disciplined cost control, and margin stability, with CEO Timothy FitzGerald emphasizing the company's ability to maintain 'robust cash flows and driven margin performance' even in a challenging market. While food processing experienced revenue declines due to customer-driven delays, the residential segment benefited from growth in outdoor products. Commercial foodservice margins expanded as cost actions and favorable product mix offset muted buying from large chain customers. Is now the time to buy MIDD? Find out in our full research report (it's free). Revenue: $906.6 million vs analyst estimates of $941.7 million (2.2% year-on-year decline, 3.7% miss) Adjusted EPS: $2.08 vs analyst estimates of $1.97 (5.3% beat) Adjusted EBITDA: $182.1 million vs analyst estimates of $185.7 million (20.1% margin, 1.9% miss) Operating Margin: 15.5%, in line with the same quarter last year Organic Revenue fell 3.8% year on year (-8.7% in the same quarter last year) Market Capitalization: $8.03 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Walt Liptak (Seaport) asked about the segment outlook and where the biggest changes in 2025 would occur; CFO Bryan Mittelman highlighted that commercial segment performance will drive the overall results, with muted growth due to macro uncertainty and customer investment delays. Jeff Hammond (KeyBanc) inquired about the rationale behind prioritizing the share buyback program; CEO Timothy FitzGerald detailed that strong cash flow, balance sheet strength, and limited M&A opportunities outside food processing made buybacks the most attractive use of capital. Mircea Dobre (Baird) pressed for detail on the timeline and allocation of tariff costs by segment; Chief Commercial Officer Steve Spittle explained the majority of the impact would hit commercial and residential, with mitigation efforts relying on pricing and operational improvements. Tim Thein (Raymond James) questioned the sustainability of margin improvements from favorable product mix and the geographic distribution of new store openings; Mittelman and Spittle noted positive near-term mix effects and a growing international share of new business, especially in Europe, India, and Brazil. Brian McNamara (Canaccord Genuity) sought specifics on competitive pricing in response to tariffs and updates on Open Kitchen adoption; Spittle said Middleby's planned price increases are below most competitors, and James Pool (CTO) emphasized strong pipeline momentum for Open Kitchen and several new product rollouts. In the quarters ahead, our analysts will monitor (1) Middleby's ability to implement price increases and offset tariff costs without sacrificing customer demand, (2) progress on the food processing spin-off, including leadership appointments and detailed financial disclosures, and (3) adoption rates for new digital kitchen and automation products. Additional attention will be paid to supply chain execution and the evolving competitive landscape in commercial foodservice and residential categories. Middleby currently trades at $150.25, up from $135.38 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
MIDD Q1 Earnings Call: Spin-Off, Tariffs, and Share Buyback Dominate Management's Focus
Kitchen product manufacturer Middleby (NYSE:MIDD) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.2% year on year to $906.6 million. Its non-GAAP profit of $2.08 per share was 5.3% above analysts' consensus estimates. Is now the time to buy MIDD? Find out in our full research report (it's free). Revenue: $906.6 million vs analyst estimates of $941.7 million (2.2% year-on-year decline, 3.7% miss) Adjusted EPS: $2.08 vs analyst estimates of $1.97 (5.3% beat) Adjusted EBITDA: $182.1 million vs analyst estimates of $185.7 million (20.1% margin, 1.9% miss) Operating Margin: 15.5%, in line with the same quarter last year Organic Revenue fell 3.8% year on year (-8.7% in the same quarter last year) Market Capitalization: $7.96 billion Middleby's first quarter results were shaped by segment-specific trends and operational discipline across its diversified kitchen equipment portfolio. Management attributed stable margins and cash flow generation to effective cost controls and selective growth in the Residential segment, particularly outdoor products. CEO Timothy FitzGerald discussed ongoing investments in automation, digital connectivity, and the build-out of innovation centers as crucial to sustaining Middleby's position in commercial foodservice and food processing. Bryan Mittelman, CFO, noted that while the commercial segment saw benefit from beverage platform wins and favorable customer mix, muted spending by large chain customers and delivery delays in food processing held back broader sales momentum. Looking ahead, Middleby's outlook is defined by three major themes: the anticipated spin-off of its Food Processing Group, substantial tariff-related cost headwinds, and a stepped-up share buyback program. Management expects ongoing pricing actions and operational adjustments to mitigate the impact of tariffs, though margin pressures are likely to persist in the near term. FitzGerald stated, 'We have a high degree of confidence that through the balance of this year, [tariff costs] will all be offset,' but acknowledged persistent uncertainty in customer investment decisions. The company remains focused on product innovation and leveraging its U.S.-centric manufacturing base to capture share in impacted categories. Management identified the pending Food Processing spin-off, new tariffs, and accelerated share repurchases as the largest business developments, while also highlighting evolving customer demand and product innovations. Food Processing spin-off progress: Middleby reiterated that it remains on track to separate its Food Processing Group into a standalone public company in early 2026. Management believes this will allow targeted growth and capital allocation strategies for both businesses, aiming to unlock shareholder value and better align each entity with relevant industry peers. Accelerated share buyback: The board authorized an additional 7.5 million shares for repurchase, representing about 21% of outstanding equity. Management plans to deploy the majority of annual free cash flow to buybacks, citing a belief that the current share price undervalues Middleby's long-term prospects. Tariff mitigation underway: New tariffs, especially on Chinese-sourced components, are expected to add $150–$200 million in annual costs, mainly impacting the Commercial and Residential segments. Management is responding with mid- to high single-digit price increases, operational adjustments, and supply chain shifts, aiming to offset the majority of these costs by year-end. Commercial segment mix shift: Successes in beverage platforms and select cooking and refrigeration brands were partially offset by muted buying from large chain customers. Management noted a positive margin impact from favorable customer and product mix despite overall revenue softness. Product innovation and market expansion: Middleby highlighted progress in automation, ventless cooking, IoT-enabled kitchen equipment, and new beverage dispensing solutions. The company is investing in adjacent markets like poultry, pet, and snack foods, and reported strong early traction for its Open Kitchen connectivity platform and next-generation appliances. Middleby's forward guidance centers on the interplay of tariff headwinds, execution on pricing strategies, and the strategic separation of its Food Processing business. Tariff cost management: Management expects tariff-driven cost increases to pressure margins through the year, particularly in Commercial and Residential segments. The company is depending on price increases, supply chain initiatives, and operational efficiencies to restore profitability, but acknowledged that customer demand and competitive reactions could affect the pace and effectiveness of these efforts. Food Processing spin-off execution: The planned spin-off is expected to bring greater strategic focus and unlock new growth opportunities for both the remaining Middleby business and the new standalone entity. Management will provide more detail on leadership, cost structure, and financials later this year, with a dedicated shareholder event scheduled for the fourth quarter. Innovation and customer adoption: Ongoing investments in automation, digital sales tools, and connected kitchen platforms like Open Kitchen are seen as key to driving organic growth. Management indicated that successful rollout and customer uptake of new products—especially in international markets—will be critical for revenue improvement in the second half of the year. Over the coming quarters, the StockStory team will monitor (1) progress on offsetting tariff-related costs and the success of announced price adjustments, (2) milestones toward the Food Processing Group spin-off—including leadership appointments and detailed financial disclosures, and (3) evidence of sustained demand for new product rollouts and digital connectivity solutions, especially internationally. Execution on these fronts will signal whether Middleby can deliver on its strategic transformation despite current macro headwinds. Middleby currently trades at a forward P/E ratio of 14.9×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
1 Small-Cap Stock to Keep an Eye On and 2 to Avoid
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here is one small-cap stock that could be the next big thing and two that may have trouble. Market Cap: $1.22 billion A pioneer in connected home audio systems, Sonos (NASDAQ:SONO) offers a range of premium wireless speakers and sound systems. Why Should You Dump SONO? Products and services aren't resonating with the market as its revenue declined by 6.3% annually over the last two years Historical operating margin losses point to an inefficient cost structure Negative returns on capital show that some of its growth strategies have backfired Sonos's stock price of $10.10 implies a valuation ratio of 48.4x forward P/E. To fully understand why you should be careful with SONO, check out our full research report (it's free). Market Cap: $7.90 billion Holding a Guinness World Record for creating the world's fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer. Why Are We Out on MIDD? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Anticipated sales growth of 2.2% for the next year implies demand will be shaky Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.7% annually Middleby is trading at $146.76 per share, or 14.8x forward P/E. Read our free research report to see why you should think twice about including MIDD in your portfolio, it's free. Market Cap: $942.4 million With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. Why Does CECO Stand Out? Impressive 17.2% annual revenue growth over the last two years indicates it's winning market share this cycle Projected revenue growth of 22.6% for the next 12 months is above its two-year trend, pointing to accelerating demand Adjusted operating margin expanded by 10.8 percentage points over the last five years as it scaled and became more efficient At $26.75 per share, CECO Environmental trades at 20.7x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Reflecting On Professional Tools and Equipment Stocks' Q1 Earnings: Middleby (NASDAQ:MIDD)
Let's dig into the relative performance of Middleby (NASDAQ:MIDD) and its peers as we unravel the now-completed Q1 professional tools and equipment earnings season. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 9 professional tools and equipment stocks we track reported a slower Q1. As a group, revenues missed analysts' consensus estimates by 0.8%. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Holding a Guinness World Record for creating the world's fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer. Middleby reported revenues of $906.6 million, down 2.2% year on year. This print fell short of analysts' expectations by 3.7%. Overall, it was a softer quarter for the company with a significant miss of analysts' organic revenue and EBITDA estimates. 'Middleby has a demonstrated track record of operational excellence, strong cash flow generation and disciplined capital investments, which provides the foundation for our attractive capital allocation framework," said Tim FitzGerald, CEO of The Middleby Corporation. Interestingly, the stock is up 9.8% since reporting and currently trades at $148.70. Read our full report on Middleby here, it's free. Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries. ESAB reported revenues of $678.1 million, down 1.7% year on year, outperforming analysts' expectations by 2.2%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 7.3% since reporting. It currently trades at $128.90. Is now the time to buy ESAB? Access our full analysis of the earnings results here, it's free. Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military. Snap-on reported revenues of $1.24 billion, down 3% year on year, falling short of analysts' expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Snap-on delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.6% since the results and currently trades at $326.73. Read our full analysis of Snap-on's results here. With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Stanley Black & Decker reported revenues of $3.74 billion, down 3.2% year on year. This print beat analysts' expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is up 15.8% since reporting and currently trades at $70.85. Read our full, actionable report on Stanley Black & Decker here, it's free. Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries. Lincoln Electric reported revenues of $1.00 billion, up 2.4% year on year. This number topped analysts' expectations by 2.9%. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts' organic revenue estimates but a miss of analysts' EPS estimates. Lincoln Electric achieved the biggest analyst estimates beat among its peers. The stock is up 8.2% since reporting and currently trades at $199.02. Read our full, actionable report on Lincoln Electric here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
08-05-2025
- Business
- Yahoo
The Middleby Corp (MIDD) Q1 2025 Earnings Call Highlights: Record Cash Flows and Strategic ...
Middleby has demonstrated strong cash flow generation, with operating cash flows of over $141 million in Q1, the highest for a first quarter. The company plans to separate its food processing business into a stand-alone public company by early 2026, aiming to unlock significant shareholder value. The Middleby Corp ( NASDAQ:MIDD ) has authorized an additional 7.5 million shares under its accelerated buyback program, reflecting confidence in the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Story Continues Q & A Highlights Q: Can you provide an update on the 2025 sales guidance and which segments are seeing the biggest changes? A: Bryan Mittelman, CFO, explained that the full-year outlook is primarily driven by the commercial segment due to its size. The change in outlook is largely due to macroeconomic factors and trade environment uncertainties affecting consumer behavior and customer investment decisions. This uncertainty impacts all segments, but the dynamics differ between residential and commercial/food processing. Q: What informed the decision to accelerate the share buyback program? A: CEO Timothy Fitzgerald stated that the decision was influenced by several factors, including the company's strong cash flow, balance sheet, and belief that the current share price does not reflect the business's strength. The company views itself as the best investment opportunity and plans to deploy most of its cash flow towards buybacks, especially given the maturity of the commercial and residential segments. Q: How is Middleby addressing the impact of tariffs, and what are the opportunities for market share gains? A: CEO Timothy Fitzgerald noted that while tariffs present challenges, they also offer opportunities due to Middleby's strong US manufacturing footprint. The company is confident in offsetting tariff costs through operational initiatives and pricing actions. Middleby sees opportunities for market share gains in categories like light-duty cooking equipment and induction, where competitors rely more on imports. Q: Can you clarify the allocation of the $175 million tariff impact across segments and how you plan to offset these costs? A: Steven Spittle, Chief Commercial Officer, explained that the tariff impact is mostly on the commercial and residential segments, with less impact on food processing. The company plans to offset costs through pricing actions, supply chain adjustments, and operational initiatives, aiming for a cost-neutral position by the end of the year. Q: What is the outlook for new store openings, and how does it affect Middleby's revenue? A: Steven Spittle mentioned that new store openings are weighted more towards international markets, with significant growth expected in Europe, India, and Brazil. Middleby is well-positioned to support this growth due to its investments in international resources and service capabilities. The company expects sequential revenue improvement throughout the year, supported by these new store openings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
