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Mar 31, 2020
Mettler-Toledo Q1 2020 Earnings Report
Mettler-Toledo's first quarter results were announced, revealing a sales decrease of 4% and an adjusted EPS decrease of 2% compared to the prior year.
Key Takeaways
Mettler-Toledo International Inc. reported a 4% decrease in sales and a 2% decrease in adjusted EPS for the first quarter of 2020, as COVID-19 significantly impacted sales in China and other regions. Gross margins improved, and adjusted operating margins were maintained through margin and cost containment initiatives. The company is not providing full-year guidance due to the uncertainty surrounding COVID-19.
Reported sales decreased by 4% compared to the prior year, with local currency sales down by 3%.
Net earnings per diluted share (EPS) were $4.03, while adjusted EPS was $4.00, a 2% decrease year-over-year.
Sales in the Americas increased by 2%, while sales in Europe and Asia/Rest of World decreased by 7% and 10%, respectively.
The company expects local currency sales to decline approximately -8% to -12% and adjusted EPS to be in the range of $4.05 to $4.45 for the second quarter of 2020.
Forward Guidance
For the second quarter 2020, the Company estimates that local currency sales will decline approximately -8% to -12%, and Adjusted EPS is forecasted to be in the range of $4.05 to $4.45.
Positive Outlook
- Margin and productivity initiatives are expected to continue to benefit the company.
- Temporary cost containment measures have been implemented.
- Reductions in discretionary spending are in place.
- The company is focused on being well-positioned for the recovery.
- The company believes it can capitalize on its strong competitive advantages.
Challenges Ahead
- Forecasting is very difficult given the significant uncertainty surrounding COVID-19.
- There is ensuing impact to the global economic environment.
- The company will not provide an estimate for full year sales growth.
- The company will not provide an estimate for Adjusted EPS for 2020.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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