Mettler-Toledo Q2 2022 Earnings Report
Key Takeaways
Mettler-Toledo International Inc. reported a 6% increase in reported sales compared to the prior year, with a 10% increase in local currency. EPS was $9.29, while adjusted EPS was $9.39, a 16% increase over the prior year. The company's Laboratory and Core Industrial businesses showed robust sales growth, with particularly good growth in China. Excellent sales growth and margin improvement drove strong EPS growth despite adverse foreign currency impacts.
Reported sales increased 6% compared with the prior year; local currency sales increased 10% with currency reducing sales growth by 4%.
Net earnings per diluted share (EPS) were $9.29, compared to $7.85 in the prior-year period.
Adjusted EPS was $9.39, a 16% increase over the prior-year amount of $8.10.
Local currency sales increased 12% in the Americas, 4% in Europe, and 14% in Asia/Rest of World.
Mettler-Toledo
Mettler-Toledo
Forward Guidance
Management anticipates local currency sales growth in 2022 will be between 9% and 10%. This sales growth is expected to result in Adjusted EPS in the range of $38.85 to $39.05, which represents a growth rate of 14% to 15%. For the third quarter of 2022, management anticipates local currency sales growth will be approximately 8%, and Adjusted EPS is forecasted to be $9.75 to $9.85, a growth rate of 12% to 13%.
Positive Outlook
- Local currency sales growth in 2022 will be between 9% and 10%.
- Adjusted EPS in the range of $38.85 to $39.05, which represents a growth rate of 14% to 15%.
- Local currency sales growth for the third quarter of 2022 will be approximately 8%.
- Adjusted EPS is forecasted to be $9.75 to $9.85, a growth rate of 12% to 13%.
- Company will continue to leverage its Spinnaker sales and marketing initiatives and product portfolio to target profitable growth opportunities.
Challenges Ahead
- Forecasting continues to be challenging due to dynamic market conditions.
- Uncertainty in the economic environment including challenges in the global supply chain and inflationary pressures.
- Unfavorable foreign currency impacts.
- Potential impacts of COVID-19 and the war in Ukraine.
- Current foreign exchange rates represent a greater headwind to Adjusted EPS in the second half of 2022 compared with previous guidance.