The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Matthews International missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Matthews International tallied revenue of $230.1 million. The four analysts polled by S&P Capital IQ expected revenue of $233.7 million on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $239.8 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 $0.61. The three earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.47 for Q4 were 34% lower than the prior-year quarter's $0.71 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 37.4%, 90 basis points worse than the prior-year quarter. Operating margin was 9.5%, 430 basis points worse than the prior-year quarter. Net margin was 5.6%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $217.5 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $938.5 million. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 88 members out of 88 rating the stock outperform, and members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Matthews International 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 Matthews International is outperform, with an average price target of $39.00.
- Add Matthews International to My Watchlist.