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Mativ Q3 sales fall, missing estimates, after tornado disruption

By Reuters News


Overview

  • Specialty materials maker's Q3 sales fell 2.8% yr/yr, mainly due to tornado impact

  • Adjusted EPS for Q3 rose to $0.31

  • Adjusted EBITDA for Q3 declined 7% yr/yr


Outlook

  • Company expects full-year financial performance to be ahead of prior year

  • Company expects inventory losses from tornado to be fully recoverable

  • Company says it is focusing on initiatives to accelerate sustainable, profitable revenue growth


Result Drivers

  • FAM SEGMENT GROWTH - Higher volume/mix and increased selling prices in Filtration & Advanced Materials segment drove sales growth

  • TORNADO IMPACT - July tornado led to lower sales and volumes in Sustainable & Adhesive Solutions, especially in Paper & Packaging

  • OPERATIONAL DISRUPTION - Adjusted EBITDA growth was hampered by operational disruption from the July tornado, per CEO Shruti Singhal


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$499.50 mln

$510 mln (1 Analyst)

Q3 Adjusted EPS

Beat

$0.31

$0.25 (1 Analyst)

Q3 Loss Per Share

$0.03

Q3 Adjusted EBITDA

Slight Beat*

$62.30 mln

$62 mln (1 Analyst)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • Wall Street's median 12-month price target for Mativ Holdings, Inc. is $21.00, about 88% above its November 3 closing price of $11.17

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 2 - Celanese Q3 sales rise 6%

  • Nov 4 - Solstice Advanced Materials beats Q3 revenue estimates on segment growth, raises FY outlook

  • Nov 2 - Chemours Q3 adjusted profit misses estimates despite titanium pricing gains


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.)

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