It's been a good week for The Middleby Corporation (NASDAQ:MIDD) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.8% to US$141. Results were roughly in line with estimates, with revenues of US$992m and statutory earnings per share of US$2.13. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Middleby

Following last week's earnings report, Middleby's seven analysts are forecasting 2024 revenues to be US$3.98b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 22% to US$8.77. Before this earnings report, the analysts had been forecasting revenues of US$4.01b and earnings per share (EPS) of US$8.94 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$161, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Middleby, with the most bullish analyst valuing it at US$181 and the most bearish at US$120 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Middleby's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2024 being well below the historical 9.8% p.a. growth over the last five years. Compare this to the 170 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.2% per year. Factoring in the forecast slowdown in growth, it looks like Middleby is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Middleby going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Middleby that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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