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With a market cap of $27.6 billion, Mettler-Toledo International Inc. (MTD) operates in the precision instruments sector and specializes in high-precision weighing and analytical instruments. It serves diverse industries worldwide, providing laboratory, industrial, and retail weighing solutions, as well as in-line measurement systems for production processes. The Columbus, Ohio-based company is expected to unveil its fiscal Q3 earnings results after the market closes on Thursday, Nov. 7.
Ahead of the event, analysts forecast the medical equipment maker to post a profit of $10 per share, reflecting a growth of 2% from $9.80 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line projections in three of the past four quarters while missing on another occasion. MTD surpassed the consensus EPS estimate by a margin of 7.2% in the last reported quarter.
For fiscal 2024, analysts expect MTD to report EPS of $40.34, a 6.1% increase from $38.03 in fiscal 2023.
Over the past 52 weeks, MTD has returned 33.2%, underperforming the broader S&P 500 Index's ($SPX) 41.9% rise. However, the stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) 21.1% increase over the same period.
Despite reporting better-than-expected Q2 adjusted EPS of $9.65 and revenue of $946.8 million on Aug. 1, Mettler-Toledo's shares fell 4.9% the following day due to concerns over declining sales in key segments, particularly a 12% drop in the Food Retail segment and a 5% decrease in Industrial Instruments. Additionally, the significant headwinds from weakening market conditions in Asia, especially sluggish demand in China, further contributed to investor worries. The company's Q3 adjusted profit guidance of $9.90 to $10.05 per share was below analysts' expectations, contributing to negative market sentiment and highlighting concerns about a slower-than-expected recovery in sales.
Analysts' consensus rating on MTD stock is cautious, with a "Hold" rating overall. Out of 10 analysts covering the stock, opinions include one "Strong Buy," seven "Holds," one "Moderate Sell," and one "Strong Sell." As of writing, MTD is trading below the average analyst price target of $1,383.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
