Matrix Service (NASDAQ: MTRX) reported Q4 EPS of $0.03, $0.04 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $293.1 million versus the consensus estimate of $292.69 million.

• Fourth quarter revenue of $293.1 million and full year revenue of $1.092 billion
• Company recorded impairment charges of $18.0 million in quarter, resulting in a fully diluted EPS of $(0.55) and $(0.43) for the fourth quarter and fiscal year, respectively
• Exclusive of this impairment, adjusted fully diluted EPS for the quarter and fiscal year were $0.03 and $0.15, respectively
• Book-to-bill was 2.0 on project awards of $597.5 million in the fourth quarter and 1.5 on project awards of $1.628 billion for the full year
• Backlog is $1.219 billion, an increase of 33% in the fourth quarter and 79% for the full year
• Fiscal 2019 guidance set at $1.250 to $1.350 billion in revenue and $0.85 to $1.15 for fully diluted earnings per share

"As we progressed through fiscal 2018, we saw significant improvement in the end markets we serve, reflected in part by the strong project awards received in our Storage Solutions and Industrial segments and by improving levels of higher margin work across most of the business. Backlog at June 30, 2018 increased 79% to $1.219 billion during the year," said John R. Hewitt, President and Chief Executive Officer. "That said, the majority of these awards came later than expected, pushing revenue into fiscal 2019 and beyond.

"In addition to the strong project award activity, as we indicated on our third quarter call, we saw improvement in our revenue volumes and operating results in the fourth quarter.

"However, our fourth quarter results were impacted by impairment charges totaling $18.0 million. This includes a goodwill impairment charge of $17.3 million in the Electrical Infrastructure segment and a $0.7 million write off of an amortizing intangible asset in the Oil Gas & Chemical segment. The goodwill impairment was triggered by the Company’s decision to shift its strategy away from EPC power generation projects to smaller individual packages that better fit the Company’s risk profile, combined with the recent trend of increased competition and sluggish maintenance and capital spending by some key clients in the Northeast and Mid Atlantic high voltage markets."

GUIDANCE:

Matrix Service sees FY2019 EPS of $0.85-$1.15, versus the consensus of $0.94. Matrix Service sees FY2019 revenue of $1.25-1.35 billion, versus the consensus of $1.25 billion.

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