Mettler-Toledo International Inc. (NYSE: MTD) provided an update on its fourth quarter 2023 financial results, citing unexpected shipping delays with a new external European logistics service provider as the reason for the below-guidance performance.
For the fourth quarter ended December 31, 2023, the company estimates that reported sales declined approximately 12%, with local currency sales declining approximately 13% due to currency increasing sales growth by approximately 1%. This is a significant deviation from the previous guidance of a local currency sales decline of approximately 7% to 8%.
The company also withdrew its previously-issued adjusted EPS guidance due to the impact of the shipping delays on its fourth quarter 2023 adjusted EPS results.
Mettler-Toledo International Inc. will be presenting at the 42nd annual J.P. Morgan Healthcare Conference on Wednesday, January 10 at 11:15 a.m. Eastern Time, where it will provide additional information. The company will release its fourth quarter 2023 financial results after the market close on February 8th and will host a conference call at 8:30 a.m. Eastern Time on February 9th.
In response to the update, management stated, "We are focused on executing our proven growth strategies and believe we will largely recover from the shipping delays in the first quarter of 2024."
At the close of the trading day, the company's stock price experienced a 1.4% decrease, reaching $1133.08 per share.
Mettler-Toledo International Inc. is a leading global supplier of precision instruments and services, with strong leadership positions in its businesses and a focus on innovation. The company's products are critical in research and development, quality control, and manufacturing processes for customers in various industries, including life sciences, food, and chemicals. With products sold in more than 140 countries and a direct presence in approximately 40 countries, the company has a notable global footprint.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,936 | $3,009 | $3,085 | $3,718 | $3,920 | $3,911 |
| Revenue Growth | n/a | 2.49% | 2.54% | 20.51% | 5.43% | -0.22% |
| Operating Margins | 22% | 23% | 24% | 26% | 27% | 27% |
| Net Margins | 17% | 19% | 20% | 21% | 22% | 22% |
| Net Income (MM) | $513 | $561 | $603 | $769 | $873 | $870 |
| Net Interest Expense (MM) | $35 | $37 | $39 | $43 | $55 | $75 |
| Depreciation & Amort. (MM) | $37 | $39 | $42 | $45 | $47 | $48 |
| Earnings Per Share | $19.88 | $22.47 | $24.91 | $32.78 | $38.41 | $39.18 |
| Diluted Shares (MM) | 25 | 25 | 24 | 23 | 23 | 22 |
| Free Cash Flow (MM) | $422 | $506 | $632 | $801 | $738 | $883 |
| Capital Expenditures (MM) | $143 | $97 | $92 | $108 | $121 | $105 |
| Current Ratio | 1.42 | 1.47 | 1.26 | 1.11 | 1.2 | 1.12 |
| Total Debt (MM) | $1,035 | $1,291 | $1,334 | $1,682 | $2,015 | $2,108 |
| Net Debt / EBITDA | 1.24 | 1.5 | 1.57 | 1.59 | 1.72 | 1.83 |
Mettler-Toledo International has growing revenues and a flat capital expenditure trend and strong margins with a stable trend. Additionally, the company's financial statements display irregular cash flows and healthy leverage. Furthermore, Mettler-Toledo International has positive expected EPS Growth.
