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Dec 31, 2019

Mettler-Toledo Q4 2019 Earnings Report

Mettler-Toledo experienced sales growth and strong earnings growth, overcoming currency and tariff headwinds.

Key Takeaways

Mettler-Toledo International Inc. reported a 3% increase in reported sales compared to the prior year, with a 4% increase in local currency. EPS was $7.84, while adjusted EPS was $7.78, a 14% increase over the prior year. The company anticipates local currency sales growth of approximately 4% in 2020.

Reported sales increased 3% compared with the prior year.

In local currency, sales increased 4% in the quarter as currency reduced sales growth by 1%.

Net earnings per diluted share as reported (EPS) were $7.84, compared with $7.11 in the prior-year period.

Adjusted EPS was $7.78, an increase of 14% over the prior-year amount of $6.85.

Total Revenue
$844M
Previous year: $818M
+3.2%
EPS
$7.78
Previous year: $6.85
+13.6%
Gross Margin
59%
Adjusted Operating Profit
$256M
Gross Profit
$498M
Previous year: $478M
+4.3%
Cash and Equivalents
$208M
Previous year: $178M
+16.7%
Free Cash Flow
$176M
Previous year: $153M
+15.4%
Total Assets
$2.79B
Previous year: $2.62B
+6.5%

Mettler-Toledo

Mettler-Toledo

Mettler-Toledo Revenue by Geographic Location

Forward Guidance

Management anticipates local currency sales growth in 2020 will be approximately 4%. This sales growth is expected to result in Adjusted EPS in the range of $24.85 to $25.10, a growth rate of 9% to 10%.

Positive Outlook

  • Local currency sales growth in 2020 will be approximately 4%.
  • Adjusted EPS in the range of $24.85 to $25.10.
  • Adjusted EPS growth rate of 9% to 10%.
  • Local currency sales growth and Adjusted EPS guidance remains unchanged from previous guidance.
  • The Company anticipates that local currency sales growth in the first quarter 2020 will be approximately 0% to 1%, and Adjusted EPS is forecasted to be in the range of $4.20 to $4.30, an increase of 2% to 5%.

Challenges Ahead

  • They will face tough comparisons in the first quarter 2020 due to strong sales in the prior-year quarter.
  • They will face strong headwinds to Adjusted EPS due to adverse currency and the impact of tariff costs in the first quarter.
  • The Company expects a significant impact on its China sales in the first quarter due to the Wuhan Coronavirus.
  • Uncertainty remains in the macroeconomic environment.
  • Market conditions are subject to change.

Revenue & Expenses

Visualization of income flow from segment revenue to net income