Mueller Industries Q2 sales rise on higher volumes and prices

Overview

• US industrial goods maker's Q2 net sales rose yr/yr on higher volumes and prices

• Q2 net income and diluted EPS both increased slightly from prior year

• Company completed two metals business acquisitions and raised dividend after stock split

Outlook

• Company expects recent acquisitions to meaningfully contribute to results in the near term

• Company anticipates continued strength in commercial, industrial, and electrical markets

• Company is optimistic U.S. residential construction will eventually improve and energy costs may fall

Result Drivers

• VOLUME AND PRICE INCREASES - Co said unit volume growth in all three segments and price increases tied to higher material costs drove net sales growth

• HIGHER COPPER PRICES - Co cited a 30.6% yr/yr increase in average COMEX copper price as a factor influencing results

• ACQUISITIONS - Co completed two metals business acquisitions in Q2; Bison Metals delivered a record quarter and is expected to contribute meaningfully

Company press release: ID:nBwNb0KYa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 $74.75, about 26.8% above its July 20 closing price of $58.97

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 20 - Steel Dynamics' second-quarter profit jumps on record shipments, improved pricing

• July 21 - Boliden lags Q2 forecasts as mine disruption, smelter ramp-up delay weigh

• July 20 - Trump says he signed proclamation to adjust tariffs on aluminum imports

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)