Mueller Industries Q2 sales beat estimates on higher prices

Overview

• Mueller Industries Q2 net sales beat analyst expectations, driven by higher selling prices

• Net income rises to $245.9 mln, including $36.3 mln insurance gain

• Excluding insurance gain, net income was $217.9 mln versus $160.2 mln

Outlook

• Company anticipates increased demand when interest rates decrease

• Mueller says trade protections to ultimately benefit most of its portfolio companies

• Company focuses growth on water infrastructure, HVAC/R, and electrical transmission

Result Drivers

• INSURANCE CLAIM - $36.3 mln gain from insurance claim related to 2023 tornado boosted net income

• ACQUISITIONS - Contributions from Nehring and EPC acquisitions in 2024 helped drive sales growth

• HIGHER SELLING PRICES - Increased selling prices due to rise in raw material costs contributed to sales growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 $101.50, about 17.8% above its July 21 closing price of $83.42

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwBb3K0a