The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Matthews International beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank.
Gross margins improved, operating margins shrank, and net margins shrank.
Matthews International logged revenue of $217.2 million. The three analysts polled by S&P Capital IQ hoped for a top line of $209.7 million. Sales were 4.8% higher than the prior-year quarter's $207.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.47. The three earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.40 for Q1 were 11% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 100%, 6,150 basis points better than the prior-year quarter. Operating margin was 8.7%, 190 basis points worse than the prior-year quarter. Net margin was 5.2%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $229.6 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $922.2 million. The average EPS estimate is $2.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 84 members out of 84 rating the stock outperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Matthews International a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Matthews International is buy, with an average price target of $43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.