The company is benefiting from supplying the right kinds of businesses at the right time.
Energy and mining industry supplier Matrix Service (MTRX 15.32%) was a bright ball of energy on the stock exchange Tuesday. Its breaking news was a fresh set of quarterly earnings released Monday after the close of trading that featured a smashing beat on the bottom line. Investors rewarded the company by bidding its share price up by more than 15% on Tuesday, an attention-grabbing shift given the modest 0.5% gain of the S&P 500 index that trading session.
A mixed quarter, but solid prospects for the future
In its fiscal 2024 fourth quarter, which ended June 30, Matrix Service booked just under $190 million in revenue. That was down from almost $206 million in the same period of its fiscal 2023. The company’s non-GAAP (adjusted) net loss deepened but not by much, coming in at $3.9 million ($0.14 per share) against a year-ago deficit of $3 million.
On average, analysts tracking the stock were expecting a higher revenue figure of just under $203 million. However, they were also modeling for a significantly deeper adjusted net loss of $0.21 per share.
“We advanced work on multiple large projects during the quarter, which contributed to meaningful cash generation to close-out the fiscal year,” CEO John Hewitt said in the earnings release. “As a reminder, we are still in the early phases of these multi-year projects.”
Double-digit percentage revenue growth predicted
Matrix Service said that its core markets are doing well, and demand for its goods should be strong. The company proffered revenue guidance of $900 million to $950 million for the entirety of fiscal 2025. That’s comfortably above both the fiscal 2024 total of $728 million and the analysts’ consensus estimate of slightly under $890 million.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
