Why Is Analytical Instruments Maker Mettler-Toledo Stock Sinking Today?
Portfolio Pulse from Lekha Gupta
Mettler-Toledo International Inc (NYSE:MTD) stock dropped approximately 4% after the company announced a reduction in Q4 guidance. The company now expects Q4 sales to decline by around 12-13% Y/Y, compared to the previously forecasted 7-8% decline. The downward revision is attributed to unexpected shipping delays caused by a new external European logistics service provider. Mettler-Toledo anticipates recovery from these delays in Q1 2024. Consequently, the company has also withdrawn its Q4 2023 Adjusted EPS guidance. In Q3, Mettler-Toledo reported revenue of $942.5 million and adjusted EPS of $9.80, which missed revenue consensus but beat EPS estimates.
January 05, 2024 | 12:15 pm
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NEGATIVE IMPACT
Mettler-Toledo's stock price is experiencing a downturn due to the revised Q4 guidance indicating a larger than expected sales decline and the withdrawal of Adjusted EPS guidance.
The stock price is likely to be negatively impacted in the short term due to the lowered sales guidance and the uncertainty created by the withdrawal of the Adjusted EPS guidance. Investors typically react unfavorably to downward revisions in guidance, which can lead to a decrease in stock price as market expectations adjust to the new information.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100