Middleby Stock Falls After Q2 Results, Warns On Supply Chain Disruptions

Middleby Corp MIDD reported second-quarter sales growth of 71.4% year-over-year to $808.77 million, +64.8% on an organic basis, beating the consensus of $803.17 million.
Sales by segments: Commercial Foodservice $508.78 million (+90.2% Y/Y), Residential Kitchen $169.99 million (+65.2% Y/Y) and Food Processing $130.01 million (+28% Y/Y).
Adjusted EPS improved to $2.11 from $0.55 in 2Q20, beating the consensus of $2.04.
The gross margin expanded by 511 bps to 37.6%.
The operating income increased to $136.72 million from $39.12 million, and the margin expanded by 862 bps to 16.9%.
Middleby generated cash from operating activities year-to-date of $172.38 million, compared to $164.76 million a year ago. Free cash flow of $159.02 million.
Adjusted EBITDA was $186.16 million, compared to $74.44 million in 2Q20, and margin expanded by 725 bps to 23%.
Middleby's backlog at the end of the quarter was $994.2 million.
The company's cash balances at Q2 end were $395.6 million, and net debt amounted to $1.4 billion.
Middleby said it is impacted by rising supply chain disruptions in the near term that may adversely affect shipments, service levels, and production.
Price Action: MIDD shares are trading lower by 4.12% at $183.98 on the last check Thursday.

Momentum79.05

Growth26.63

Quality83.09

Value29.72

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