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Investing.com - Canaccord Genuity lowered its price target on Middleby Corp (NASDAQ:MIDD) to $162.00 from $186.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading at $118.30, has declined significantly, falling over 28% in the past six months and now trading near its 52-week low.
Middleby reported Q2 results that were broadly in line with expectations on sales but approximately 2% below consensus on adjusted EBITDA. With trailing twelve-month revenue of $3.84 billion and EBITDA of $813 million, the company maintains strong profitability metrics. The company’s Food Processing segment outperformed with sales approximately 9% above consensus, while Commercial Foodservice and Residential Kitchen segments both came in about 2% below consensus.
Despite an improving tariff picture, Middleby estimates the incremental tariff cost impact will be approximately $150 million on an annualized basis, which contributed to Canaccord’s decision to reduce earnings estimates by 4-5%.
The Food Processing business remains on track to be spun off in the first half of 2026, a move that Canaccord believes will allow management to focus more on the core Commercial Foodservice business.
Canaccord maintained its Buy rating, noting that the company provided quantifiable Q3 and FY2025 guidance along with trimmed prepared remarks on the earnings call, which the firm attributed to likely activist influence.
In other recent news, Middleby Corporation announced its Q2 2025 earnings, revealing a mixed performance. The company reported an adjusted earnings per share (EPS) of $2.35, slightly exceeding analyst expectations of $2.29. However, the revenue came in at $977 million, falling short of the projected $980.67 million. This revenue shortfall has raised concerns among investors, particularly in light of potential tariff impacts. Despite the better-than-expected EPS, the revenue miss contributed to a negative market reaction. Analysts have been closely monitoring these developments, as they may influence future assessments and recommendations. These recent developments highlight the ongoing challenges and opportunities facing Middleby Corporation.
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