Matrix Service Beats Estimates on Top and Bottom Lines

Matrix Service (Nasdaq: MTRX  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Matrix Service beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and GAAP earnings per share increased significantly.

Margins grew across the board.

Revenue details
Matrix Service logged revenue of $201 million. The five analysts polled by S&P Capital IQ predicted sales of $184.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $175.3 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 $0.27. The five earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.27 for Q2 were 35% higher than the prior-year quarter's $0.20 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 11.5%, 20 basis points better than the prior-year quarter. Operating margin was 5.6%, 70 basis points better than the prior-year quarter. Net margin was 3.5%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $174.6 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $742.6 million. The average EPS estimate is $0.89.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 234 members rating the stock outperform and 10 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 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 $14.50.

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