Mueller Industries Q2 sales rise on higher volumes and prices

Mueller Industries, Inc.

Mueller Industries, Inc.

MLI

0.00


Overview

  • US industrial goods maker's Q2 net sales rose yr/yr on higher volumes and prices

  • Q2 net income and diluted EPS both increased slightly from prior year

  • Company completed two metals business acquisitions and raised dividend after stock split


Outlook

  • Company expects recent acquisitions to meaningfully contribute to results in the near term

  • Company anticipates continued strength in commercial, industrial, and electrical markets

  • Company is optimistic U.S. residential construction will eventually improve and energy costs may fall


Result Drivers

  • VOLUME AND PRICE INCREASES - Co said unit volume growth in all three segments and price increases tied to higher material costs drove net sales growth

  • HIGHER COPPER PRICES - Co cited a 30.6% yr/yr increase in average COMEX copper price as a factor influencing results

  • ACQUISITIONS - Co completed two metals business acquisitions in Q2; Bison Metals delivered a record quarter and is expected to contribute meaningfully


Company press release: ID:nBwNb0KYa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

$1.43 bln

$1.27 bln (1 Analyst)

Q2 EPS

$1.13

Q2 Operating Income

$309.97 mln

Q2 Pretax Profit

$326.24 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Mueller Industries Inc is $74.75, about 26.8% above its July 20 closing price of $58.97

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 20 - Steel Dynamics' second-quarter profit jumps on record shipments, improved pricing

  • July 21 - Boliden lags Q2 forecasts as mine disruption, smelter ramp-up delay weigh

  • July 20 - Trump says he signed proclamation to adjust tariffs on aluminum imports


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