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What's in Store for Mettler-Toledo's (MTD) Q2 Earnings?

Zacks Equity Research

Mettler-Toledo International, Inc. MTD is set to report second-quarter 2019 results on Aug 1.

The company topped the Zacks Consensus Estimate in all the trailing four quarters, recording average positive earnings surprise of 1.69%.

In the last reported quarter, Mettler-Toledo came up with adjusted earnings of $4.10 per share, which increased 10% on a year-over-year basis. Moreover, the figure outpaced the Zacks Consensus Estimate by 4 cents.

In addition, net sales of $679.45 million surpassed the Zacks Consensus Estimate of $674.29 million and were up 3% year over year.

How are Estimates Faring?

For second-quarter 2019, the company anticipates local currency sales growth of 5.5% on a year-over-year basis. Adjusted earnings are anticipated in the range of $5.05-$5.10 per share, indicating year-over-year growth of 9-10%.

For the to-be-reported quarter, the Zacks Consensus Estimate for sales and earnings per share is pegged at $736.34 million and $5.09, respectively.

Let’s see how things are shaping up for this announcement.

Mettler-Toledo International, Inc. Price and EPS Surprise


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 has been riding on solid momentum across segments, especially Laboratory and Industrial, due to favorable demand environment. Notably, these two segments remain key catalysts for the quarter to be reported.

Positive contributions from acquisitions are expected to aid the top line in the to-be-reported quarter.

Mettler-Toledo’s strengthening core industrial and product inspection offerings are anticipated to aid the performance of the Industrial segment in the quarter. Also, its Laboratory segment, which has been gaining from portfolio strength, should perform well in the second quarter.

The company remains confident of growth strategies that include productivity and margin initiatives. Its continued investments in Spinnaker sales, field force, product portfolio expansion and marketing programs are likely to drive the top and bottom lines in the second quarter.

Moreover, the company’s stern drive productivity programs remain a major positive.

However, its sluggish Retail segment remains a concern.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mettler-Toledo currently has a Zacks Rank #2 and an Earnings ESP of 0.00%, making surprise prediction difficult.

Stocks That Warrant a Look

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

SeaWorld Entertainment SEAS has an Earnings ESP of +11.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verizon Communications Inc. VZ has an Earnings ESP of +0.52% and a Zacks Rank #3.

Ciena CIEN has an Earnings ESP of +5.26% and holds a Zacks Rank #2.

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