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Preview: What to Expect From Middleby’s Q3 Earnings on Tuesday

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·2 min read
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  • MIDD

Middleby, a global leader in the foodservice equipment industry, is expected to report earnings per share of $2.03 in the third quarter, which represents year-over-year growth of over 50% from $1.34 per share seen in the same period a year ago.

The Elgin, Illinois-based company will report revenue of $837.32 million, up 32% from the same period a year ago. It is worth noting that the company has always surpassed consensus earnings estimates in the last four quarters.

Middleby’s better-than-expected third-quarter earnings results, which will be announced on Tuesday, November 9 before the market opens, could help the stock scale to a fresh record high. The U.S. foodservice equipment maker’s shares rose over 44% so far this year.

Analyst Comments

“The outlook for Middleby (MIDD) appears positive heading into 3Q21 earnings next week, with ITW Food Equipment seeing ~50% growth in restaurant revenue and JBT Foodtech generating+15% organic growth. Restaurant commentary points to investment activity centred around increasing efficiency/productivity, although we could see new builds pushed out due to labour/supply chain constraints,” noted Saree Boroditsky, an equity analyst at Jefferies.

“We expect MIDD to benefit from an increased focus on kitchen efficiency given labour shortages and inflationary pressures. Commentary from multiple operators suggests restaurants are continuing to invest in equipment to increase productivity and minimize the dependency on labour. DPZ is putting in place equipment and technology to reduce the amount of labour needed to produce doughballs. Both SBUX and NDLS also continue to make investments in equipment that helps increase employee and restaurant productivity.”

Middleby Stock Price Forecast

Two analysts who offered stock ratings for Middleby in the last three months forecast the average price in 12 months of $221.00 with a high forecast of $222.00 and a low forecast of $220.00. The average price target represents an 18.85% change from the last price of $185.95. Those two analysts rated “Buy”, according to Tipranks.

According to Reuters, analysts are rating the shares “buy” with the breakdown of recommendations 8 “strong buys” and “buys,” 2 “holds” and 2 “sells.”

Several other analysts have also updated their stock outlook. Barclays raised the target price to $200 from $195. JPMorgan lifted the target price to $194 from $180. BMO upped the target price to $250 from $225.

Technical analysis suggests it is good to buy now as 100-day Moving Average and 100-200-day MACD Oscillator signals a strong buying opportunity.

This article was originally posted on FX Empire