The 10-second takeaway
For the quarter ended March 31 (Q2), Matthews International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share was unchanged. GAAP earnings per share contracted.
Margins contracted across the board.
Matthews International tallied revenue of $256.4 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $240.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $225.5 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 four earnings estimates compiled by S&P Capital IQ forecast $0.59 per share. Non-GAAP EPS of $0.61 were the same as the prior-year quarter. GAAP EPS of $0.51 for Q2 were 5.6% lower than the prior-year quarter's $0.54 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 37.0%, 60 basis points worse than the prior-year quarter. Operating margin was 9.8%, 140 basis points worse than the prior-year quarter. Net margin was 5.5%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $247.1 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $951.8 million. The average EPS estimate is $2.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 81 members out of 81 rating the stock outperform, and members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $38.67.
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