Matthews International (NASDAQ:MATW) will release its quarterly earnings report on Thursday, 2024-11-21. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Matthews International to report an earnings per share (EPS) of $0.38.
Anticipation surrounds Matthews International's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
The company's EPS beat by $0.01 in the last quarter, leading to a 4.99% drop in the share price on the following day.
Here's a look at Matthews International's past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.55 | 0.45 | 0.37 | 0.90 |
| EPS Actual | 0.56 | 0.69 | 0.37 | 0.96 |
| Price Change % | -5.0% | 5.0% | -8.0% | -4.0% |
Matthews International Share Price Analysis
Shares of Matthews International were trading at $23.9 as of November 19. Over the last 52-week period, shares are down 30.44%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Insights Shared by Analysts on Matthews International
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Matthews International.
Matthews International has received a total of 1 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $40.0, the consensus suggests a potential 67.36% upside.
Peer Ratings Overview
This comparison focuses on the analyst ratings and average 1-year price targets of Liquidity Services, Healthcare Services Group and Viad, three major players in the industry, shedding light on their relative performance expectations and market positioning.
For Liquidity Services, analysts project an Outperform trajectory, with an average 1-year price target of $27.0, indicating a potential 12.97% upside. Healthcare Services Group received a Buy consensus from analysts, with an average 1-year price target of $14.5, implying a potential 39.33% downside. As per analysts' assessments, Viad is favoring an Outperform trajectory, with an average 1-year price target of $47.5, suggesting a potential 98.74% upside. Comprehensive Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for Liquidity Services, Healthcare Services Group and Viad, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Matthews International | Buy | -9.34% | $131.84M | 0.35% |
| Liquidity Services | Outperform | 15.90% | $49.40M | 3.57% |
| Healthcare Services Group | Buy | 4.07% | $63.42M | 2.92% |
| Viad | Outperform | 24.54% | $92.55M | 51.43% |
Key Takeaway:
Matthews International ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.
Delving into Matthews International's Background
Matthews International Corp is a personal services company that primarily provides brand solution services, memorialization products, and industrial products in the United States and Europe. The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries. The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes a significant amount. Most of Matthews' revenue is generated from sales made in the U.S., while European customers also contribute a sizable percentage.
Financial Insights: Matthews International
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Challenges: Matthews International's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -9.34%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.42%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Matthews International's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.35%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Matthews International's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.09%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Matthews International's debt-to-equity ratio surpasses industry norms, standing at 1.78. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Matthews International visit their earnings calendar on our site.
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