Matrix Service (MTRX) Misses Q3 EPS by 26c, Miss on Revenues

Matrix Service (NASDAQ: MTRX) reported Q3 EPS of ($0.19), $0.26 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $245.65 million versus the consensus estimate of $285.16 million.

Key highlights:

• Reported a net loss of $0.19 per fully diluted share in the third quarter; earned $0.12 year-to-date
• Book-to-bill was 1.8 on awards of $434.8 million in the quarter and 1.3 year-to-date on awards of $1.030 billion, with significant project awards in the Storage Solutions and Industrial segments
• Backlog of $914.2 million is the highest since March 31, 2016 and 26.1% higher than December 31, 2017
• Strength in project awards continues post-quarter
• Liquidity increased to $133.7 million, up 34.2% from December 31, 2017

“As expected, our third quarter results were the lowest of the year, but the actual results, which were primarily impacted by lower revenue volumes, proved more disappointing relative to our earlier forecast,” said Matrix Service Company President and CEO John R. Hewitt. “Results were also impacted by non-routine tax adjustments and lower margin work bid in a highly competitive environment that allowed us to maintain market position and critical resources.”

Hewitt added, “The strong project awards in the quarter and year-to-date has pushed our backlog to its highest point since March 2016. This momentum has continued since the end of the third quarter and we expect a similar award performance in the fourth quarter. The improving size and quality of our backlog and the strength of our opportunity pipeline will begin to marginally improve revenue volume and earnings in the fourth quarter and point to a much stronger fiscal 2019. Therefore, we expect the fourth quarter to return to profitability, with full year earnings per share between $0.15 and $0.20 on revenue of $1.075 to $1.1 billion.”

For earnings history and earnings-related data on Matrix Service (MTRX) click here.

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