Diversified solutions provider Matthews International (NASDAQ: MATW) will be reporting results this Thursday after the bell. Here’s what investors should know.
Matthews beat analysts’ revenue expectations last quarter, reporting revenues of $284.8 million, down 29.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Matthews a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Matthews’s revenue to decline 40.7% year on year, a further deceleration from the 9.3% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Matthews’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pool delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.8%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Pool’s stock price was unchanged after the resultswhile Monarch was up 15.9%.
Read our full analysis of Pool’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. Matthews is up 12.1% during the same time and is heading into earnings with an average analyst price target of $38 (compared to the current share price of $28.22).
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