Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Matrix Service Co.'s Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of engineering services company Matrix Service Co. (NASDAQ: MTRX  ) jumped 18% today after announcing earnings and new contract wins.

So what: First-quarter revenue was up 68.8% to $381.5 million and net income jumped 75% to $11.4 million, or $0.42 per share. That was well ahead of the $0.34 estimate from Wall Street.  

Adding to the earnings beat was an announcement this morning that Matrix was awarded $100 million in terminal expansion contracts.  

Now what: Operations are doing well and the 44% increase in backlog to $905.1 million is encouraging long term. Management also increased its earnings guidance to $1.34 to $1.42 per share for 2014, which is above Wall Street's $1.31 estimate. I like the direction Matrix is headed operationally and think the energy and industrial markets the company serves are going to grow overall. Shares are getting expensive after today's pop, but if they pull back in the next few weeks, they'll be a good buy for investors.

Three stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2951359, ~/Articles/ArticleHandler.aspx, 9/4/2015 8:50:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,374.76 23.38 0.00%
S&P 500 1,951.13 2.27 0.00%
NASD 4,733.50 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:59 PM
MTRX $22.97 Down +0.00 +0.00%
Matrix Service Com… CAPS Rating: ***