Mueller Industries (NYSE:MLI) Issues Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Mueller Industries beat earnings expectations, reporting quarterly EPS of $1.13 versus analysts’ estimate of $1.09. The company also posted a strong return on equity of 25.97% and a net margin of 19.37%.
• The stock rose on the news, trading up to $60.14 during the session, though volume was well below its daily average. Mueller Industries currently has a market cap of $13.3 billion and a P/E ratio of 15.68.
• Analyst sentiment remains positive, with an average rating of “Buy” and an average price target of $75.00. Recent notes included upgrades from Wall Street Zen and Northcoast Research, while Weiss Ratings reiterated a buy rating.

Mueller Industries (NYSE:MLI - Get Free Report) issued its earnings results on Tuesday. The industrial products company reported $1.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.04, Zacks reports. Mueller Industries had a return on equity of 25.97% and a net margin of 19.37%.

Mueller Industries Price Performance

Shares of MLI traded up $1.17 during mid-day trading on Tuesday, hitting $60.14. 102,505 shares of the company's stock were exchanged, compared to its average volume of 1,536,946. The company has a market cap of $13.30 billion, a PE ratio of 15.68 and a beta of 1.11. Mueller Industries has a 52 week low of $41.17 and a 52 week high of $70.95. The company has a 50-day simple moving average of $64.26 and a 200 day simple moving average of $62.14.

Mueller Industries Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were given a dividend of $0.175 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.70 dividend on an annualized basis and a yield of 1.2%. Mueller Industries's dividend payout ratio is 18.32%.

Analyst Ratings Changes

A number of analysts recently weighed in on MLI shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Mueller Industries in a research report on Friday. Wall Street Zen upgraded shares of Mueller Industries from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 27th. Finally, Northcoast Research raised shares of Mueller Industries from a "neutral" rating to a "buy" rating and set a $75.00 target price for the company in a research note on Thursday, July 16th. Two research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $75.00.

Insider Activity

In other news, CEO Gregory L. Christopher sold 206,532 shares of the business's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $68.64, for a total value of $14,177,389.14. Following the sale, the chief executive officer owned 1,609,822 shares of the company's stock, valued at $110,506,231.19. The trade was a 11.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MLI. Compound Planning Inc. grew its holdings in shares of Mueller Industries by 9.7% in the 4th quarter. Compound Planning Inc. now owns 5,709 shares of the industrial products company's stock valued at $655,000 after acquiring an additional 504 shares in the last quarter. Corient Private Wealth LLC boosted its position in Mueller Industries by 91.2% during the fourth quarter. Corient Private Wealth LLC now owns 40,393 shares of the industrial products company's stock valued at $4,637,000 after purchasing an additional 19,272 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its position in Mueller Industries by 15.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 154,151 shares of the industrial products company's stock valued at $17,697,000 after purchasing an additional 21,064 shares during the last quarter. State of Tennessee Department of Treasury grew its stake in Mueller Industries by 0.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 49,055 shares of the industrial products company's stock valued at $5,632,000 after purchasing an additional 407 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new position in Mueller Industries in the fourth quarter valued at approximately $624,000. Institutional investors own 94.50% of the company's stock.

Mueller Industries Company Profile

Mueller Industries, Inc is a diversified manufacturer and marketer of copper, brass, aluminum and plastic products. Headquartered in Memphis, Tennessee, the company serves a wide range of markets including HVAC (heating, ventilation and air conditioning), refrigeration, plumbing, industrial gas, automotive and agricultural sectors. Its product portfolio encompasses copper and plastic tubing, brass fittings, valves and related components designed for fluid handling and temperature control applications.

The company operates through multiple business segments, including the Plumbing & Refrigeration segment, which supplies copper and plastic tubing, fittings and valves for residential and commercial construction markets; the Industrial Metals & Mining segment, which provides aluminum shapes and specialty brass products for industrial applications; and the Climate segment, which focuses on copper tubing and components for air conditioning and refrigeration systems.

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