Materion Corp. (MTRN) Tops Q2 EPS by 1c, Lowers FY Guidance

Materion Corp. (NYSE: MTRN) reported Q2 EPS of $0.43, $0.01 better than the analyst estimate of $0.42. Revenue for the quarter came in at $276.9 million versus the consensus estimate of $295.92 million.

Materion Corp. sees FY2015 EPS of $1.65-$1.85, versus prior guidance of $1.80-$2.00 and the consensus of $1.88.

CHAIRMAN’S COMMENTS

Richard J. Hipple, Chairman, President and Chief Executive Officer, stated, “I am pleased with the quarter and our team’s ability to deliver the fifth consecutive quarter of meaningful year-over-year value-added sales and earnings growth. Our strategy of pursuing organic growth through new product introductions and solving our customers’ challenges with advanced materials is working. Despite our successes over the past several quarters, we are cautious about the current volatility in the global market, particularly the continued strength of the U.S. dollar, the greater than expected drop in oil and gas exploration, the recent slowdown in the telecommunications infrastructure 4G build out in China, and what the unknown impact may be of ongoing economic weakness in China. We are revising our annual earnings estimate to reflect these changing market and economic conditions. We remain committed to strategies to deliver greater than GDP organic value-added sales growth and margin expansion and remain confident in our long-term earnings growth outlook.”

OUTLOOK

Despite the solid sales and earnings performance in the second quarter of 2015 and the solid five quarters of growth momentum we have delivered, global market and economic conditions are changing. China demand is clearly slowing, particularly in the telecommunications infrastructure 4G build out. Based on this change, coupled with the greater than previously expected drop-off in the oil and gas market and the continued strength of the U.S. dollar, the Company is revising its 2015 adjusted earnings forecast range to $1.65 to 1.85 per share. This represents a range that is flat to 12% above 2014 adjusted earnings of $1.65 per share, diluted.

For earnings history and earnings-related data on Materion Corp. (MTRN) click here.

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