Why Shares of Middleby Slumped This Week
Shares in commercial and residential kitchen-equipment company Middleby (NASDAQ: MIDD) fell by more than 15% this week as of midday Thursday. There's little doubt as to why: a falling stock market and Middleby's disappointing first-quarter earnings release on Tuesday.
Two key talking points are reverberating around the industrial sector during the current earnings season, and Middleby is no different. Ongoing supply chain difficulties and surging raw material costs have hit profitability and lowered profit margin expectations. Indeed, Middleby's first-quarter operating margin was 12.3% compared to 16% in the same period last year. CEO Tim FitzGerald acknowledged significant near-term challenges but also said, "We believe our results will continue to improve in the back half of 2022 and into 2023."
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Source Fool.com
