EU and US could reach trade deal this weekend - Reuters
ELGIN, Ill. - Middleby Corporation (NASDAQ:MIDD) reported first quarter earnings that beat analyst expectations, but revenue fell short of estimates on Wednesday.
The company’s shares were down 4.34% in premarket trading following the release.
The commercial foodservice equipment maker posted adjusted earnings per share of $2.08, exceeding the analyst consensus of $1.98. However, revenue came in at $906.63 million, missing estimates of $941.38 million and declining 2.2% YoY.
Organic sales, which exclude impacts from acquisitions and foreign exchange, decreased 3.8% compared to the prior year period.
"Our strong U.S. manufacturing footprint, combined with a global operating presence, position us well to navigate recent tariff-related challenges and provide us competitive advantages over the long term," said CEO Tim FitzGerald.
The company announced an acceleration of its share repurchase program, with plans to deploy the majority of free cash flow to buybacks. Middleby’s board increased the total share repurchase authorization by 7.5 million shares to 11.4 million shares, representing 21% of outstanding equity.
Middleby generated operating cash flow of $141.1 million in Q1, roughly flat with $140.9 million in the year-ago quarter. The company’s net leverage ratio stood at 2.0x at quarter-end.
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