Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of food equipment maker Middleby (NAS: MIDD) rose as much as 19.5% today after the company released second-quarter earnings.
So what: Sales rose 23.3% to $260.0 million in the second quarter and the company had net income of $31.0 million, or $1.67 per share. Analysts only expected $1.41 in earnings, marking at least four straight quarters the company has topped estimates.
Now what: The company's food processing group led the way with a 94.8% increase in revenue due to a number of acquisitions. These acquisitions drove most of the company's growth, which shouldn't be forgotten because growth would have been just 4.9% without the new additions. With shares trading at 19.5 times 2012 earnings estimates they're a little too expensive for me to jump into today, despite another earnings beat.
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The article Why Middleby's Shares Jumped originally appeared on Fool.com.
Fool contributorTravis Hoiumdoes not have a position in any company mentioned. You can follow Travis on Twitter at@FlushDrawFool, check out hispersonal stock holdingsor follow his CAPS picks atTMFFlushDraw.Motley Fool newsletter serviceshave recommended shorting Middleby. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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