What's In Store For Mettler-Toledo's (MTD) Q4 Earnings?

Mettler-Toledo International, Inc. (NYSE:MTD) is set to report fourth-quarter 2019 results on Feb 6.

The company topped the Zacks Consensus Estimate in all the trailing four quarters, delivering average positive earnings surprise of 1.3%.

Q4 Estimates

For fourth-quarter 2019, Mettler-Toledo anticipates sales growth of 3% on a year-over-year basis in local currency. The Zacks Consensus Estimate for revenues is pegged at $840.2 million, indicating growth of 2.7% from the year-ago reported figure.

Adjusted earnings are anticipated in the range of $7.66-$7.71 per share, suggesting 12-13%year-over-year growth. The Zacks Consensus Estimate for earnings is currently pegged at $7.69 per share, indicating growth of 12.3% from the year-ago quarter.

Mettler-Toledo International, Inc. Price and EPS Surprise

Performance in the Last Reported Quarter

In the last reported quarter, Mettler-Toledo came up with adjusted earnings of $5.77 per share, which increased 13% on a year-over-year basis. Moreover, the figure outpaced the Zacks Consensus Estimate by 1.1%.

In addition, net sales of $753.9 million were inline with the Zacks Consensus Estimate. The figure was up 3% year over year.

Let’s see how things have shaped up for this announcement.

Key Factors to Consider

Mettler-Toledo’s strong product pipeline — which includes robust analytical instruments and balances — is expected to have driven sales in the fourth quarter. Additionally, positive contributions from strategic acquisitions are likely to have aided its fourth-quarter performance.

The company’s Laboratory and Industrial segments are expected to have performed well in the quarter under review due to favorable market demand conditions.

Laboratory Instruments: The company’s investments in product portfolio expansion, field force, Spinnaker sales and marketing programs are likely to have driven sales growth in this segment. Further, growing R&D activities are anticipated to have negatively impacted the segment’s fourth-quarter performance.

The Zacks Consensus Estimate for sales in the Laboratory segment is pegged at $452 million.

Industrial Instruments: Mettler-Toledo’s solid momentum across core industrial business is likely to have driven the segment’s sales in the fourth quarter. However, softness in the company’s product inspection business owing to sluggishness in Europe is likely to get reflected on the segment’s fourth-quarter performance.

Notably, the Zacks Consensus Estimate for sales in the Industrial segment is pegged at $350 million.

Retail: This segment is comprised of the food retail business. However, weak momentum in this business is likely to have affected the company’s top line in the fourth quarter.

The Zacks Consensus Estimate for fourth-quarter sales in the Retail segment is $47.5 million.

Tariff imposition as a result of the U.S.-China trade war is likely to have impacted the company’s export-import activities in China in the fourth quarter. This is expected to get reflected on the company’s fourth-quarter results.

Also, currency headwinds might affect its fourth-quarter results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Mettler-Toledo this time around. 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. 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 #3 and an Earnings ESP of 0.00%.

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.

Five9, Inc. (NASDAQ:FIVN) has an Earnings ESP of +1.02% and a Zacks Rank of 2.

AMETEK, Inc. (NYSE:AME) has an Earnings ESP of +0.14% and a Zacks Rank #3.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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