Tariff, Brexit Fears Hurt Middleby
Kitchen equipment specialist Middleby (NASDAQ: MIDD) is going through a time of transition. The company is moving on following the surprise decision by Selim Bassoul to leave his CEO role, with transition efforts gaining traction. Yet external factors are also affecting the company, and those impacts are showing up in Middleby's sales and profit figures.
Coming into Wednesday's second-quarter financial report, Middleby investors were looking to see solid revenue growth and a healthy rise in earnings. Middleby did manage to get those numbers to move higher, but the gains weren't as extensive as many had hoped. Going forward, shareholders seem concerned that the company looks vulnerable to so many factors that aren't entirely within its control to overcome.
Middleby's second-quarter results didn't live up to expectations. Revenue was higher by 14% to $761 million, but that fell short of the $767.5 million that most of those following the stock were looking to see. Net income of $92.2 million rose almost 10% from year-ago levels, but even after accounting for some one-time items, adjusted earnings of $1.70 per share were less than the consensus forecast among investors for $1.76 per share.
Quelle Fool.com
