Mettler-Toledo International Continues To Deliver On Earnings

Mettler-Toledo MTD reported strong 13% organic revenue growth and better-than-expected margin expansion which combined led to revenue/EPS of $490.2 mn/$1.71 vs. Goldman Sachs' $464.4 mn/$1.56 and the Street's $460.3 mn/$1.56. Emerging markets remain the primary driver of growth, up 23% in local currency yoy, and now account for 33% of sales. MTD raised FY2010 guidance and provided FY2011 EPS guidance of $7.35-$7.55, which Goldman notes was above its $7.32 and current consensus $7.29. Goldman is raising its 2010-2013 EPS estimates to $6.67, $7.52, $8.22, and $9.15 from $6.43, $7.32, $8.02, and $8.90, respectively, to reflect the 3Q2010 performance and higher organic growth for the lab and industrials business segments partially offset by lower expectations for retail. With 2011 revenue guidance of 4-6% local currency, and about 17% of sales from China, we have higher confidence in our revised estimates. Goldman has a Neutral rating and $141 PT on MTD MTD is trading higher at $139.69