In This Article:
Diversified solutions provider Matthews International (NASDAQ:MATW) will be reporting results tomorrow afternoon. Here’s what to look for.
Matthews missed analysts’ revenue expectations by 10% last quarter, reporting revenues of $427.8 million, down 10.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
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 1.7% year on year to $442.3 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
Analysts covering the company have generally 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 three times over the last two years.
With Matthews being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer discretionary stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.3% on average over the last month. Matthews is up 8.6% during the same time and is heading into earnings with an average analyst price target of $38 (compared to the current share price of $24.17).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.