Latest news with #Middleby
Yahoo
4 days ago
- 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.
Yahoo
07-05-2025
- Business
- Yahoo
Middleby (NASDAQ:MIDD) Misses Q1 Revenue Estimates
Kitchen product manufacturer Middleby (NYSE:MIDD) missed Wall Street'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 Middleby? Find out in our full research report. Middleby (MIDD) Q1 CY2025 Highlights: 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 Free Cash Flow Margin: 11.8%, down from 13.7% in the same quarter last year Organic Revenue fell 3.8% year on year (-8.7% in the same quarter last year) Market Capitalization: $7.26 billion '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. Company Overview Holding a Guinness World Record for creating the world's fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer. Sales Growth A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Middleby's 5.5% annualized revenue growth over the last five years was tepid. This was below our standard for the industrials sector and is a rough starting point for our analysis. Middleby Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Middleby's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.4% annually. Middleby Year-On-Year Revenue Growth We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Middleby's organic revenue averaged 4.3% year-on-year declines. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. Middleby Organic Revenue Growth This quarter, Middleby missed Wall Street's estimates and reported a rather uninspiring 2.2% year-on-year revenue decline, generating $906.6 million of revenue.
Yahoo
29-04-2025
- Business
- Yahoo
1 Industrials Stock to Consider Right Now and 2 to Approach with Caution
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.2% over the past six months. This drawdown was worse than the S&P 500's 5.6% loss. Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one resilient industrials stock at the top of our wish list and two we're passing on. Market Cap: $7.01 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 Should You Dump MIDD? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.3% annually Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3 percentage points At $131.39 per share, Middleby trades at 12.9x forward price-to-earnings. Check out our free in-depth research report to learn more about why MIDD doesn't pass our bar. Market Cap: $3.50 billion Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services. Why Does MATX Give Us Pause? Customers postponed purchases of its products and services this cycle as its revenue declined by 11.2% annually over the last two years Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Diminishing returns on capital suggest its earlier profit pools are drying up Matson is trading at $108 per share, or 10.4x forward price-to-earnings. Read our free research report to see why you should think twice about including MATX in your portfolio, it's free. Market Cap: $10.16 billion With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries. Why Should RBC Be on Your Watchlist? Annual revenue growth of 17.4% over the last five years was superb and indicates its market share increased during this cycle Highly efficient business model is illustrated by its impressive 19.8% operating margin, and it turbocharged its profits by achieving some fixed cost leverage Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.1% annually RBC Bearings's stock price of $325.25 implies a valuation ratio of 31x forward price-to-earnings. 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 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
