What's in the Offing for Mettler-Toledo's (MTD) Q4 Earnings?
Mettler-Toledo International, Inc. MTD is scheduled to report its fourth-quarter 2023 results on Feb 8.
Per the preliminary information, both sales and adjusted earnings per share are expected to be below the previous guidance.
In the fourth quarter, MTD sales declined 12% on a reported basis and 13% in local currency year over year, according to the latest update provided by the company.
The Zacks Consensus Estimate for the same is pegged at $979.3 million, indicating a decline of 7.4% from the year-ago period’s reported figure.
The consensus mark for earnings is projected at $10.32 per share, suggesting a 14.7% decline from the prior-year quarter’s reading.
We note that MTD’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 2.2%.
Mettler-Toledo International, Inc. Price and EPS Surprise
Mettler-Toledo International, Inc. price-eps-surprise | Mettler-Toledo International, Inc. Quote
Key Factors to Consider
Mettler-Toledo’s shipment delays, due to a new external European logistics service provider, are expected to have hurt its top line significantly in the fourth quarter.
Further, the company’s fourth-quarter results are likely to have reflected weakness in overall market demand, particularly in China.
Weakening momentum in core end markets, such as life sciences and continuing soft economic conditions in Europe and the Americas, are expected to have negatively impacted the company’s performance outside of China in the upcoming results.
Sluggish demand in automated chemistry, analytical instruments and process analytics businesses is likely to have affected the Laboratory segment’s performance in the to-be-reported quarter.
The company’s sluggish Industrial segment, owing to tough growth comparisons and weaker market demand for core industrial products, particularly in China and America, is expected to have been a major headwind for the company’s top-line growth during the fourth quarter.
Decreasing sales volume and a reset in its variable compensation programs are likely to have been negatives for the company in the quarter under review.
However, growing momentum across its Food Retail segment, driven by significant project activity, is expected to have driven the company’s top-line growth in the to-be-reported quarter.
MTD’s robust sales and marketing strategies, cost-cutting efforts and innovative portfolio are likely to have acted as major tailwinds for the company during the fourth quarter.
Increasing demand for the company’s LabX software, driven by growing momentum in automation and digitalization end-markets, is expected to have aided MTD’s performance in the quarter under review.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Mettler-Toledo has an Earnings ESP of -9.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
CrowdStrike CRWD has an Earnings ESP of +0.53% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
CrowdStrike is scheduled to release fourth-quarter 2023 results on Mar 5. The Zacks Consensus Estimate for CRWD’s earnings is pegged at 82 cents per share, suggesting a jump of 74.5% from the prior-year quarter.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s figure of 22 cents per share.
Expedia Group EXPE has an Earnings ESP of +5.00% and a Zacks Rank #3 at present.
Expedia Group is set to announce fourth-quarter 2023 results on Feb 8. The Zacks Consensus Estimate for EXPE’s earnings is pinned at $1.67 per share, suggesting a rise of 32.5% from the year-ago quarter.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Mettler-Toledo International, Inc. (MTD) : Free Stock Analysis Report
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CrowdStrike (CRWD) : Free Stock Analysis Report
