Materion Corp. (MTRN) Tops Q1 EPS by 22c, Revenues Beat; Offers FY21 EPS Guidance Above Consensus

Materion Corp. (NYSE: MTRN) reported Q1 EPS of $0.82, $0.22 better than the analyst estimate of $0.60. Revenue for the quarter came in at $354.4 million versus the consensus estimate of $332.45 million.

First Quarter 2021 Highlights

• Net sales were $354.4 million compared to $277.9 million in the prior year period; value-added sales increased 29% year on year to a record $198.6 million for the quarter
• Operating profit of $19.7 million; adjusted earnings before interest and tax expense (EBIT) was $21.4 million, or 10.8% of value-added sales, compared to $9.9 million in the prior year period
• Net income of $0.81 per share, diluted; adjusted earnings of $0.82 per share, up from $0.39 in the prior year period
• Customer funded precision clad engineered strip project remains on track; completed second quarter of shipments from existing facility

“I am pleased with our start to 2021, delivering a very strong quarter as we continue to manage through the pandemic. Our team is motivated and energized to serve our customers and return to pre-pandemic levels of performance, as demonstrated by our first quarter results,” said Jugal Vijayvargiya, President and Chief Executive Officer.

Mr. Vijayvargiya continued, “Many of our end markets are expanding, our Optics Balzers acquisition is performing well, and our organic investments are contributing, resulting in strong top line growth expectations for the full year. We continue to focus on building a robust pipeline of opportunities that will create value for our shareholders in the near, medium and longer term.”

GUIDANCE:

Materion Corp. sees Q2 2021 EPS of $0.72-$0.76, versus the consensus of $0.74.

Materion Corp. sees FY2021 EPS of $3.00-$3.30, versus the consensus of $2.87.

While a fair amount of uncertainty still exists in the overall economy, we see strength in our organic pipeline and good underlying demand across many of our end markets, in particular semiconductor, automotive, and industrial. Based on current demand levels, we expect adjusted earnings per diluted share in the second quarter to be in the range of $0.72 to $0.76 per share, an increase of 68% from the second quarter of 2020 at the midpoint.

For the full year, we expect adjusted earnings per diluted share to be in the range of $3.00 to $3.30 per share, an increase of 55% from the prior year, at the midpoint.

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

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