Q: Peter and His Wonder Team
MATR just reported quarterly results. The stock opened down 12% now recovering and down 6%. Please give your opinion about the results. Is the correction warranted or an over reaction. What do you think about this company going forward? Thank you for your insightful information.
MATR just reported quarterly results. The stock opened down 12% now recovering and down 6%. Please give your opinion about the results. Is the correction warranted or an over reaction. What do you think about this company going forward? Thank you for your insightful information.
5i Research Answer:
EPS of 31c beat estimates of 26c; revenue of $254M matched estimates. EBITDA of $42.8M beat estimates by 7.5%. Three brokers lowered their target prices. The buyback was renewed. Net income did fall sharply (19c to 3c on a GAAP basis) and with the downgrades the decline makes some sense. It is down again today as investors rethink its 19X earnings mutliple and the (relative) small size of the company. The balance sheet is fine and good EPS growth is predicted for 2025, but it needs to execute on this to get more attention.