Middleby (MIDD) came out with quarterly earnings of $2.33 per share, missing the Zacks Consensus Estimate of $2.47 per share. This compares to earnings of $2.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.67%. A quarter ago, it was expected that this food preparation equipment company would post earnings of $2.27 per share when it actually produced earnings of $2.39, delivering a surprise of 5.29%.Over the last four qua ...

Financial Performance - Net sales for the third quarter were $943 million, a decrease of 3.9% compared to the prior year period[4] - Diluted earnings per share were $2.11, with adjusted net earnings per share at $2.33[1] - Operating income was $173 million, representing 18.4% of net sales[1] - Adjusted EBITDA was $213 million, with an organic adjusted EBITDA margin of 22.6%[5] - For the three months ended September 28, 2024, net sales totaled $942.8 million, a decrease from $980.7 million in the same period of 2023, representing a decline of 3.9%[13] - For the nine months ended September 28, 2024, net sales reached $2.86 billion, a decrease of 5.5% from $3.03 billion in the same period of 2023[15] - The company reported net earnings of $114.2 million for Q3 2024, with diluted earnings per share of $2.11, compared to $108.7 million and $2.01 in Q3 2023[17] Cash Flow and Debt - Operating cash flows amounted to $157 million, down from $219 million in the prior year[5] - Operating cash flow for Q3 2024 was $156,665, a decrease of 28.5% compared to $219,153 in Q3 2023[19] - Free cash flow for Q3 2024 was $145,176, down from $197,823 in Q3 2023, representing a decline of 26.5%[19] - The company reported net cash flows from operating activities of $447,082 for the nine months ended Q3 2024, an increase of 19.9% from $373,103 in the same period of 2023[19] - Net debt at the end of the third quarter was $1.8 billion, reduced from $2.2 billion at the end of fiscal 2023[6] - Financing activities resulted in cash outflows of $(3,114) in Q3 2024, compared to $(150,533) in Q3 2023, showing a significant reduction in financing needs[19] Segment Performance - The commercial foodservice segment reported a net sales decline of 5.3%[4] - Segment operating income for the Commercial Foodservice segment was $146.1 million, with an operating income margin of 24.3%, compared to $158.6 million and 25.0% in the prior year[13] - Segment adjusted EBITDA for the Commercial Foodservice segment was $492.9 million, representing 27.2% of net sales, compared to 27.5% in the prior year[15] - Adjusted EBITDA for the total company was $213.0 million, or 22.6% of net sales, down from $225.1 million and 23.0% in the same quarter of 2023[13] Expenses and Restructuring - The company incurred restructuring expenses of $2.5 million in Q3 2024, down from $4.4 million in Q3 2023[17] - Stock compensation expenses for the three months ended September 28, 2024, were $8.7 million, compared to $13.2 million in the same period of 2023[17] - Capital expenditures in Q3 2024 were $11,489, compared to $21,330 in Q3 2023, indicating a reduction of 46.1%[19] Future Outlook - The company anticipates improvement in industry macro-conditions in 2025, supporting growth across all foodservice segments[3] Charitable Contributions - Charitable support to Ukraine amounted to $286,000 in Q3 2024, up from $118,000 in the same quarter of 2023[17] Non-GAAP Measures - Non-GAAP financial measures are used by the company to provide greater insight into its financial performance, focusing on organic net sales growth and adjusted EBITDA[21] - Free cash flow is emphasized as a key measure of operating performance, available for investments and debt repayment[22] - The company believes that its non-GAAP measures assist in comparing performance across reporting periods by excluding non-core operating impacts[21] - The company aims to enhance transparency and understanding of its financial results through the use of non-GAAP measures[20] - Adjusted net earnings and diluted per share measures are considered useful for evaluating operational performance and business planning[21]

The Middleby Corporation (MIDD) is poised to gain from its focus on launching new products and upgrading the existing ones per the industry trend. As for innovation, over the past year, the company introduced several products including MP Equipment, Blodgett ImVection, the Evo EVent Open Canopy Hood, PIZZABOT, TorQ, Discrete CFV, etc. Middleby is gaining market share in new and large product categories, including beverage and ice. It remains positioned to benefit from strong demand for ventless cooking prod ...

The Middleby Corporation (MIDD) is poised to benefit from its focus on launching new products and upgrading existing ones per the industry trend. As for innovation, over the past year, the company introduced several products including MP Equipment, Blodgett ImVection, PIZZABOT and others. It is also gaining market share in new and large product categories, including beverage and ice. The company remains focused on acquiring businesses to gain new customers and access new regions and product lines. In Februa ...

Visit Booth IA-55 for a Demonstration of the Leading IoT Solution for Foodservice Operators BOSTON, Sept. 4, 2024 /PRNewswire/ -- Powerhouse Dynamics, the leader in Internet of Things (IoT)-based solutions for the foodservice industry, is pleased to announce its return as a key sponsor of the 2024 FSTEC Conference, taking place September 16-18 in Grapevine, Texas. At Booth IA-55, Powerhouse Dynamics will be showcasing the latest advancements in Open Kitchen®, the premier foodservice IoT solution for equipme ...

Core Viewpoint - The Middleby Corporation (MIDD) has been upgraded to a hold rating due to improved 2Q24 results and macroeconomic developments, although it is still too early to confirm strong growth acceleration in the Commercial Foodservice (CF) segment [2][3]. Financial Performance - MIDD reported total sales of $992 million in 2Q24, with contributions from CF at approximately $619 million, Residential Kitchen (RK) at $193 million, and Food Processing (FP) at $180 million [3]. - The CF segment experienced a reported decline of 4%, while RK and FP saw declines of 6.2% and 5%, respectively [3]. - Adjusted EBITDA margin decreased to 21.8%, down 22% year-over-year, but the CF EBITDA margin improved by 30 basis points [3]. - Adjusted EPS fell from $2.48 to $2.39, reflecting a decline of approximately 4% [3]. Market Dynamics - Recent CPI data indicates inflation is decreasing, now below 3%, which may lead to lower interest rates and improved demand for MIDD's products [3]. - MIDD experienced a 9% sequential order growth in 2Q24, suggesting a recovery in underlying demand [4]. - The competitive promotional landscape has normalized, indicating improved demand and reduced oversupply issues [4]. Segment Analysis - The RK segment saw an organic sales decline of 670 basis points in 2Q24, but housing demand indicators have improved, suggesting better performance in 2H24 [5]. - Key factors for RK include improved housing starts, existing home inventories, and declining mortgage rates, which are expected to enhance housing demand [5]. - RK orders increased by 14% sequentially, indicating potential for improved performance in FY24 [5]. Valuation Insights - MIDD's valuation may improve if the CF segment achieves positive organic growth, potentially closing the valuation gap with Illinois Tool Works (ITW) [6]. - Historically, MIDD traded at a premium to ITW, but lower organic growth has led to a reversal of this trend [6]. - If MIDD's CF segment can match ITW's organic growth levels, it could see a significant rerating to ITW's forward EBITDA multiple of 17x, representing substantial upside potential [6]. Conclusion - The current hold rating reflects the need for further data to confirm strong growth acceleration in the CF segment, which is crucial for a potential re-rating of multiples [7]. - Monitoring key metrics such as order growth and broader restaurant industry performance will be essential for future assessments [7].

The Middleby Corporation (MIDD) reported second-quarter 2024 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27. The bottom line decreased 3.6% year over year due to lower sales. Net sales of $992 million beat the consensus estimate of $989 million. The top line dipped 4.7% year over year. Organic revenues decreased 4.8%. Acquired assets boosted sales by 0.3% while movements in foreign currencies had a negative impact of 0.2%. Segmental Results Sales from the Commercial F ...

The Middleby Corporation (NASDAQ:MIDD) Q2 2024 Results Conference Call August 1, 2024 11:00 AM ET Company Participants Timothy FitzGerald - Chief Executive Officer James Pool - Chief Technology Officer & Chief Operations Officer Bryan Mittelman - Chief Financial Officer Steve Spittle - Chief Commercial Officer Conference Call Participants Mig Dobre - Baird Brian McNamara - Canaccord Genuity Jeff Hammond - KeyBanc Capital Markets Tim Thein - Citigroup Tami Zakaria - JPMorgan Walt Liptak - Seaport Res Operato ...

Middleby (MIDD) reported $991.55 million in revenue for the quarter ended June 2024, representing a yearover-year decline of 4.7%. EPS of $2.39 for the same period compares to $2.47 a year ago. The reported revenue represents a surprise of +0.27% over the Zacks Consensus Estimate of $988.88 million. With the consensus EPS estimate being $2.27, the EPS surprise was +5.29%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Middleby (MIDD) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 5.29%. A quarter ago, it was expected that this food preparation equipment company would post earnings of $2.04 per share when it actually produced earnings of $1.89, delivering a surprise of -7.35%. Over the last four qu ...