Kitchen product manufacturer Middleby (NASDAQ:MIDD) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
Middleby beat analysts’ revenue expectations last quarter, reporting revenues of $839.9 million, up 15% year on year. It was a strong quarter for the company, with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Middleby a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Middleby’s revenue to decline 37.4% year on year, a further deceleration from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Middleby has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Middleby’s peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kennametal delivered year-on-year revenue growth of 42.6%, beating analysts’ expectations by 1.3%, and Stanley Black & Decker reported flat revenue, in line with consensus estimates. Kennametal traded down 6.1% following the results while Stanley Black & Decker was up 1.4%.
Read our full analysis of Kennametal’s results here and Stanley Black & Decker’s results here.
There has been positive sentiment among investors in the professional tools and equipment segment, with share prices up 4.2% on average over the last month. Middleby’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $168 (compared to the current share price of $134.68).
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