MIDD Earnings Prediction
The chart below shows how MIDD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MIDD sees a -0.59% change in stock price 10 days leading up to the earnings, and a +1.94% change 10 days following the report. On the earnings day itself, the stock moves by -1.34%. This data can give you a slight idea of what to expect for the next quarter's release.
MIDD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
942.81M
-3.86%
-4.92%
Gross Margin
37.70%
-1.49%
-1.54%
Operating Margin
18.66%
2.30%
2.19%
Net Margin
12.11%
9.30%
4.04%
EPS
2.11
4.98%
-0.94%
No Data Available
MIDD Earnings Analysis
Middleby Corp Corporation (MIDD.O) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Flow Generation: Middleby reported year-to-date operating cash flow of $447 million, approximately 20% ahead of the record set in 2023.
Margin Improvement: 2. Margin Expansion: The company achieved an adjusted EBITDA margin of 22.6% for Q3, which is an increase of 80 basis points from Q2, demonstrating effective cost management despite revenue challenges.
Strong Free Cash Flow: 3. Healthy Free Cash Flow: Over the past 12 months, Middleby generated free cash flow exceeding $650 million, with a yield on revenue of nearly 17%.
Improved Leverage Ratio: 4. Reduced Leverage Ratio: The total leverage ratio improved to just over 2 times, down from 2.7 times a year ago, indicating a stronger balance sheet and reduced debt levels.
Innovative Product Launch Success: 5. Successful New Product Launches: The company launched a record number of industry-leading solutions, including the Nieco broiler, which saves operators approximately $6,000 annually on energy costs, showcasing innovation and customer value.
Negative
Revenue Decline Analysis: 1. Decline in Revenue: The company reported a revenue of $943 million for Q3 2024, reflecting a 5% decrease sequentially from Q2 and a 4% decrease compared to the prior year.
Declining Foodservice Revenues: 2. Weak Commercial Foodservice Performance: Commercial Foodservice revenues decreased by 4% organically versus the prior year, with order trends weakening considerably as the quarter progressed.
Residential Unit Volume Decline: 3. Significant Drop in Residential Unit Volumes: Unit volumes across residential brands are down 30% to 40% compared to historic normalized pre-COVID levels, significantly impacting top-line performance and profitability.
Restaurant Closure Surge: 4. Restaurant Closures: The economic headwinds have resulted in an estimated 1,500 restaurant closures for 2024, a stark contrast to the originally expected unit growth of 6,000 at the beginning of the year.
Food Processing Order Challenges: 5. Challenges in Food Processing Orders: In the Food Processing segment, revenues were nearly $170 million, with orders weakening over the quarter and some projects being pushed out, indicating a cautious approach from customers.
MIDD FAQs
How does MIDD typically perform around its earnings report dates?
Is The Middleby Corporation (MIDD) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MIDD Earning Call Sentiment
The Middleby Corporation (MIDD) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
MIDD.O
-0.36%Positive
Despite strong cash flow and reduced leverage, revenue declines and macroeconomic challenges weigh on sentiment. Mixed guidance and cautious optimism for Q4 growth, coupled with unclear management responses, suggest a neutral outlook. The lack of a formal restructuring plan and uncertain margin recovery add to uncertainties, balancing the strong financial health and cash flow generation.
