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Matthews International Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Matthews International (Nasdaq: MATW) reported earnings on April 18. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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Stocks Mentioned

Matthews International Corporation Stock Quote
Matthews International Corporation
MATW
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