Matrix Service Q1 revenue rises on segment growth; swings to profit
Overview
Heavy industrial contractor's fiscal Q1 revenue rose yr/yr but missed analyst expectations
Adjusted EPS for fiscal Q1 increased and beat analyst expectations
Company approved new $25 mln share buyback program
Outlook
Matrix Service did not provide specific financial guidance for the current qtr or full yr in its press release
Result Drivers
SEGMENT GROWTH - Double-digit organic revenue growth in Storage and Terminal Solutions and Process and Industrial Facilities segments, led by specialty storage and mining and minerals activity, offset lower volumes in Utility and Power Infrastructure
PROJECT EXECUTION - Improved project execution and overhead recovery contributed to higher gross margins
COST REDUCTIONS - Lower SG&A expenses due to reduced salaries, wages, and stock compensation from restructuring plan
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Miss | $219.40 mln | $249.80 mln (2 Analysts) |
Q1 Adjusted EPS | Beat | $0.23 | $0.18 (2 Analysts) |
Q1 EPS | $0.22 | ||
Q1 Adjusted Net Income | Miss | $6.40 mln | $7.17 mln (1 Analyst) |
Q1 Adjusted EBITDA | Beat | $7.70 mln | $7.25 mln (2 Analysts) |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Matrix Service Co is $16.00, about 67.4% above its November 3 closing price of $9.56
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)