Shares Of Middleby Rise After 1Q Profit Increase

HARTFORD, Conn. (AP) — Shares of Middleby Corp. jumped Friday, a day after the maker of foodservice equipment maker reported a 7 percent increase in first-quarter profit.

An analyst raised his 2009 profit estimate to reflect the Elgin, Ill., company's results that easily beat Wall Street estimates.

Robert W. Baird & Co. analyst Peter Lisnic raised his estimate to $3.30 per share from $3.15 per share. He raised his 2010 estimate to $3.80 per share from $3.55 per share and reiterated his "outperform" rating on the stock and boosted his price target to $55 from $46.

Lisnic said the company's performance despite the recession highlights a "strong operating execution."

Analysts surveyed by Thomson Reuters expect on average earnings this year to be $3.19 per share and $3.55 per share in 2010.

Middleby is benefiting from its exposure to high-growth chains, new product introductions and international market growth, Lisnic said.

However, risks include tight credit, weak consumer demand that has prompted restaurants to curtail equipment spending, a decline in leisure travel and volatile commodity prices, particularly stainless steel, he said in a note to investors Friday.

Middleby, which manufactures equipment under brands such as TurboChef and Toastmaster, earned $14.1 million, or 77 cents per share, in the first quarter. That compares with a profit of $13.2 million, or 77 cents, in the same period a year earlier.

Analysts surveyed by Thomson Reuters expected a profit of 61 cents per share.

Shares rose $2.39, or 5.6 percent, to $44.98 in afternoon trading.