The 10-second takeaway
For the quarter ended March 31 (Q3), Matrix Service beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Margins contracted across the board.
Matrix Service booked revenue of $183.9 million. The five analysts polled by S&P Capital IQ expected revenue of $180.5 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $136.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The five earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.19 for Q3 were 5.6% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.8%, 280 basis points worse than the prior-year quarter. Operating margin was 4.0%, 160 basis points worse than the prior-year quarter. Net margin was 2.6%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $198.7 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $749.5 million. The average EPS estimate is $0.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 233 members out of 243 rating the stock outperform, and 10 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Matrix Service a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Matrix Service is outperform, with an average price target of $17.00.
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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.