Diversified solutions provider Matthews International (NASDAQ:MATW) will be announcing earnings results this Tuesday afternoon. Here’s what you need to know.
Matthews missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $427.6 million, down 9.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
Is Matthews a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Matthews’s revenue to decline 24.7% year on year to $322 million, a further deceleration from the 9.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 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. Matthews has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Matthews’s peers in the specialized consumer services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Service International delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 1.3%, and Pool reported flat revenue, in line with consensus estimates. Service International’s stock price was unchanged after the results while Pool was up 2.6%.
Read our full analysis of Service International’s results here and Pool’s results here.
Investors in the specialized consumer services segment have had steady hands going into earnings, with share prices flat over the last month. Matthews is down 4.9% during the same time and is heading into earnings with an average analyst price target of $38 (compared to the current share price of $23.04).
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