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Sep 30, 2022

Mettler-Toledo Q3 2022 Earnings Report

Mettler-Toledo reported strong Q3 2022 results, driven by growth in the Americas and China, and excellent growth in Adjusted Operating Profit and Adjusted EPS, despite significant foreign currency headwinds.

Key Takeaways

Mettler-Toledo International Inc. announced a 4% increase in reported sales compared to the prior year, with a 10% increase in local currency. EPS was $9.76, while adjusted EPS was $10.18, a 17% increase over the prior-year amount.

Reported sales increased 4% compared with the prior year, with local currency sales up 10% (currency reduced sales growth by 6%).

Net earnings per diluted share (EPS) were $9.76, compared to $8.71 in the prior-year period.

Adjusted EPS was $10.18, a 17% increase over the prior-year amount of $8.72.

The company had very good growth in its Laboratory and Core Industrial businesses.

Total Revenue
$986M
Previous year: $952M
+3.6%
EPS
$10.2
Previous year: $8.72
+16.7%
Gross Margin
59.3%
Adjusted Operating Profit
$307M
Previous year: $273M
+12.6%
Gross Profit
$585M
Previous year: $556M
+5.2%
Cash and Equivalents
$122M
Previous year: $184M
-33.5%
Free Cash Flow
$219M
Previous year: $241M
-9.2%
Total Assets
$3.29B
Previous year: $3.21B
+2.7%

Mettler-Toledo

Mettler-Toledo

Forward Guidance

Management anticipates local currency sales growth for the fourth quarter of 2022 will be approximately 7%, and Adjusted EPS is forecast to be $11.55 to $11.65, a growth rate of 10% to 11%. For the full year 2022, management anticipates local currency sales growth will be approximately 10%, and Adjusted EPS is forecast to be in the range of $38.95 to $39.05, representing growth of approximately 15%.

Positive Outlook

  • Local currency sales growth for Q4 2022 is expected to be approximately 7%.
  • Adjusted EPS for Q4 2022 is forecast to be $11.55 to $11.65, a growth rate of 10% to 11%.
  • Full year 2022 local currency sales growth is anticipated to be approximately 10%.
  • Full year 2022 Adjusted EPS is forecast to be in the range of $38.95 to $39.05, representing growth of approximately 15%.
  • Local currency sales growth in 2023 will be approximately 5%.

Challenges Ahead

  • There is uncertainty in the economic environment today including challenges in the global supply chain.
  • There are inflationary pressures.
  • There is unfavorable foreign currency impact.
  • There are potential economic impacts from COVID-19.
  • There is the war in Ukraine.