Industrial construction and maintenance company Matrix Service (NASDAQ:MTRX) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.
Matrix Service missed analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $200.2 million, up 20.6% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Matrix Service a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Matrix Service’s revenue to grow 22.6% year on year to $232.2 million, a reversal from the 7.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Matrix Service has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Matrix Service’s peers in the construction and maintenance services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Great Lakes Dredge & Dock delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 9%, and Primoris reported revenues up 20.9%, topping estimates by 12.1%. Great Lakes Dredge & Dock traded up 4.3% following the results while Primoris was also up 16.7%.
Read our full analysis of Great Lakes Dredge & Dock’s results here and Primoris’s results here.
There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 6.1% on average over the last month. Matrix Service’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $14.58).
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