Mettler-Toledo International MTD reported fourth-quarter 2024 adjusted earnings of $12.41 per share, which beat the Zacks Consensus Estimate by 6.16%. The bottom line jumped 32% on a year-over-year basis.

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Net sales of $1.045 billion surpassed the Zacks Consensus Estimate by 3.51%. The figure rose 12% both on a reported and local currency basis from the year-ago quarter.

MTD shares were up 2.8% in pre-market trading. The stock appreciated 10.8% compared with the broader Zacks Medical sector’s decline of 4.6%.

MTD’s Top Line in Detail

MTD reports revenues under three segments, namely Laboratory Instruments, Industrial Instruments and Food Retail, which generated sales of $603 million (57.7% of the net sales), $398 million (38.1% of the net sales) and $44 million (4.2% of the net sales), respectively, in the fourth quarter.

The Laboratory and Industrial segment witnessed year-over-year growth of 18% and 8%, respectively, on a local currency basis, while the Food Retail segment’s sales declined 14%. 

Total sales from the Americas, Europe and Asia/Rest of the World were $424 million (40.6% of the net sales), $308 million (29.5%) and $313 million (30%), respectively.

Sales in Europe and Asia / Rest of the World grew 19% and 14% year over year, respectively, on a local currency basis. Meanwhile, Americas sales increased 7%.

Mettler-Toledo’s Operating Results

The gross margin was 61.2%, expanding 210 basis points (bps) year over year.

Research & development (“R&D”) expenses were $50.1 million, up 7.8% from the year-ago quarter. Selling, general & administrative (“SG&A”) expenses increased 6.2% year over year to $237.3 million.

As a percentage of sales, R&D expenses declined 20 bps year over year. SG&A expenses declined 120 bps year over year as a percentage of sales.

The adjusted operating margin was 33.7%, which expanded 350 bps from the prior-year quarter.

MTD’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, Mettler-Toledo’s cash and cash-equivalent balance was $59.4 million, up from $71.6 million as of Sept. 30, 2024.

The long-term debt was $1.83 billion as of Dec. 31, 2024.

Mettler-Toledo generated $266.2 million in cash from operating activities in the reported quarter compared with $254.7 million in the previous quarter. The free cash flow was $229.8 million in the reported quarter.

Mettler-Toledo’s Q1 & 2025 Guidance

For the first quarter of 2025, Mettler-Toledo anticipates sales to decrease 3-4% in local currency from the year-ago quarter’s reported figure. 

Adjusted earnings are anticipated to be $7.75-$7.95 per share, implying 11-13% decline from the year-ago quarter’s reported number. 

For 2025, Mettler-Toledo anticipates sales in local currency to rise 3% over 2024. 

The company expects adjusted earnings between $42.35 per share and $43 per share, representing 3-5% growth over 2024.

Zacks Rank & Stocks to Consider

Currently, Mettler-Toledo has a Zacks Rank #4 (Sell).

Castle Biosciences CSTL, Integer Holdings ITGR and Community Health Systems CYH are some better-ranked stocks in the broader sector. While CSTL sports a Zacks Rank #1 (Strong Buy), ITGR and CYH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Castle Biosciences is scheduled to report its fourth-quarter 2024 results on Feb. 27. Integer is set to report fourth-quarter 2024 results on Feb. 20, while Community Health is scheduled to report its fourth-quarter 2024 results on Feb. 18.

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