What happened
Energy infrastructure company Matrix Service (MTRX -2.04%) reported a strong quarter and gave upbeat guidance about what is to come. Investors are intrigued, sending Matrix shares up more than 12% in Tuesday trading.
So what
Matrix provides engineering, construction, and maintenance services for the energy and mining markets, with a focus on utilities infrastructure, refineries, and storage and terminal solutions. The company reported an adjusted loss of $1.13 per share in its fiscal fourth quarter, which ended June 30, which was 10 cents better than estimates.
Revenue of $795.02 million came in just shy of what Wall Street had expected and was up 12.3% year over year. In a statement, CEO John R. Hewitt said:
I am extremely pleased with the progress Matrix made over the last year and excited about the prospects for the company ... As we commence work on recently awarded large capital projects, we have strong visibility into our revenue and are focused on maximizing our profitability after undergoing an internal transformation that has optimized our cost structure.
Now what
The quarter was fine, but investors are likely focused on Matrix's outlook. The company received $463.6 million in project awards in the quarter, or about 2.3 times the revenue from what was billed out during the three-month period. That's the highest quarterly-project award in five years. Matrix's backlog stood at $1.1 billion at quarter's end, up 31% in three months and 85% over the past year.
The one thing missing is profitability, and Hewitt's statement implies the company is working toward making sure all of that growth will translate into positive earnings. By all appearances, Matrix is heading in the right direction, and investors are celebrating the progress.
