A Glimpse of Middleby's Earnings Potential

Middleby (NASDAQ:MIDD) is preparing to release its quarterly earnings on Wednesday, 2025-05-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Middleby to report an earnings per share (EPS) of $1.97.

Anticipation surrounds Middleby's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

The company's EPS beat by $0.36 in the last quarter, leading to a 2.3% drop in the share price on the following day.

Here's a look at Middleby's past performance and the resulting price change:

Middleby Share Price Analysis

Shares of Middleby were trading at $136.23 as of May 05. Over the last 52-week period, shares are down 2.41%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on Middleby

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Middleby.

The consensus rating for Middleby is Outperform, based on 4 analyst ratings. With an average one-year price target of $176.25, there's a potential 29.38% upside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of ESAB, Watts Water Technologies and Donaldson, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for ESAB, with an average 1-year price target of $130.0, suggesting a potential 4.57% downside.
• Analysts currently favor an Neutral trajectory for Watts Water Technologies, with an average 1-year price target of $221.67, suggesting a potential 62.72% upside.
• Analysts currently favor an Neutral trajectory for Donaldson, with an average 1-year price target of $63.0, suggesting a potential 53.75% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for ESAB, Watts Water Technologies and Donaldson, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Middleby ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind Middleby

The Middleby Corp is engaged in designing, manufacturing, marketing, distribution and service of a broad line of foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment used in the residential market. The company conducts its business through three principal business segments namely the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The firm derives majority revenue from Commercial Foodservice Equipment Group segment.

A Deep Dive into Middleby's Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Middleby displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 0.53%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 11.08%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.11%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Middleby's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.55%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.67, caution is advised due to increased financial risk.

To track all earnings releases for Middleby visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.