Matthews (NASDAQ: MATW) reported Q1 EPS of $0.47, $0.02 better than the analyst estimate of $0.45. Revenue for the quarter came in at $364.9 million versus the consensus estimate of $357.52 million.

GUIDANCE:

Mr. Bartolacci further stated: “We are encouraged by our first quarter performance as we achieved our consolidated adjusted earnings per share projections. Our Memorialization business remains a steady and stable cash flow generator, with a strong backlog for cremation and waste incineration equipment. Excluding the client account loss from a year ago, the fiscal 2020 first quarter results for the SGK Brand Solutions segment indicated more stable conditions in the U.S. brand market. In addition, interest in our engineered products for the energy storage market continues to grow. Also, as noted earlier, the product identification market appears to be strengthening with recent new account wins for our Industrial Technologies segment. We also continue to win new warehouse automation projects in this segment.

“Additionally, we are expecting to begin realizing a portion of the benefits of our cost reduction program by the end of the current fiscal year.

“As a result, we are maintaining our earnings outlook for fiscal 2020 of mid-single digit percentage growth in adjusted EBITDA and adjusted earnings per share. However, we remain cautious in this outlook due to typical uncertainty on death rates (particularly the impact of the current flu season), continued challenging market conditions in Europe, and as our projections include several significant projects which are subject to customer timing on completion and delivery.

“The Company’s fiscal first quarter is generally the slowest quarter seasonally for earnings and operating cash flow. Consistent with historical trends, we are projecting good operating cash flow for the rest of fiscal 2020, particularly in the second half of the fiscal year. We remain focused on reducing our debt and currently project solid debt reduction during fiscal 2020.”

For earnings history and earnings-related data on Matthews (MATW) click here.