Mettler-Toledo Earnings: Revised Outlook Reflects Macro and Tariff Headwinds; FVE Lowered

Narrow-moat Mettler-Toledo reported first-quarter results that were broadly in line with our expectations. Local currency sales declined 3% year over year but increased 3% when adjusted for the impact of delayed shipments recognized in the prior year. Management highlighted a more uncertain macroeconomic environment and revised its full-year local currency sales growth guidance to 1%-2%, down from the prior 3% growth rate. After updating our model to reflect the more conservative outlook, we lower our fair value estimate to $1200 per share from $1240.