MIDD: Middleby Earnings Not Middling

By William Trent, CFA of Stock Markte Beat

Small Cap Watch List and Mid Cap Watch List member Middleby Corporation (MIDD) Reports Record Fourth Quarter Results: Financial News – Yahoo! Finance:

Middleby Corporation (NASDAQ:MIDD – News), a leading worldwide manufacturer of restaurant and foodservice cooking equipment, today reported record net sales and earnings for the fourth quarter ended December 30, 2006. Net earnings for the fourth quarter were $11,059,000 or $1.34 per share on net sales of $98,294,000 as compared to the prior year fourth quarter net earnings of $7,233,000 or $0.88 per share on net sales of $76,930,000. Net earnings for the fiscal year ended December 30, 2006 were $42,377,000 or $5.13 per share on net sales of $403,131,000 as compared to net earnings of $32,178,000 or $3.98 per share on net sales of $316,668,000 in the prior year.

We didn’t notice anything too concerning in the financial statements, and the stock is up sharply on the news. The company, which makes commercial cooking equipment used in restaurants, has made several acquisitions over the last couple of years, and these are helping to drive solid growth, and while the multiple is high it does not appear excessive given this growth.

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