Mettler-Toledo (NYSE:MTD) shares are tanking in the early session today after the provider of precision instruments lowered its financial outlook due to shipping delays.
MTD is experiencing unexpected shipping delays with its new European logistics service provider. Consequently, the company now expects sales and adjusted EPS for the fourth quarter to be below its earlier guidance. However, MTD expects a recovery in the first quarter of 2024.
For Q4, Mettler-Toledo now anticipates a sales decline of 12%. Its previous outlook had pegged sales to decline in the range of 7% to 8%. Additionally, MTD has withdrawn its previous outlook for adjusted EPS while it evaluates the impact of the shipping challenges. Further details are awaited on January 10, when the company is slated to present at the 42nd Annual J.P. Morgan Healthcare Conference.
Further, MTD is scheduled to announce its fourth-quarter results on February 8. Analysts expect the company to post an EPS of $10.71 on revenue of $979.72 million for the quarter. In the comparable year-ago period, MTD’s EPS of $12.10 had comfortably outpaced estimates of $11.68.
What is the Target Price for MTD?
Overall, the Street has a Hold consensus rating on Mettler-Toledo, and the average MTD price target of $1,106.86 points to a 3.7% potential downside in the stock. That’s on top of a nearly 23% drop in the company’s share price over the past year.
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