Mastech Digital (MHH) Misses Q1 EPS by 9c

Mastech Digital (NYSE: MHH) reported Q1 EPS of $0.19, $0.09 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $49.8 million versus the consensus estimate of $50.08 million.

First Quarter 2021 Highlights:

• Consolidated revenues totaled $49.8 million, a 2% sequential increase over fourth quarter 2020;
• The Company's Data and Analytics Services segment reported a strong bookings performance during the quarter, despite flat revenues as compared to the previous quarter;
• Customer demand improved as the COVID-19 situation recovers in North America and drives our S,G&A investments to capture anticipated future revenues;
• The IT Staffing Services segment added a record 99 consultants-on-billing, an increase of 9% during the quarter, as the demand for its services continued to increase;
• Consolidated gross margins increased 50-basis points on a year-over-year basis;
• GAAP diluted earnings per share were $0.10 in the first quarter of 2021 versus $0.16 in the first quarter of 2020;
• Non-GAAP diluted earnings per share were $0.19 in the first quarter of 2021 versus $0.23 in the first quarter of 2020.

Vivek Gupta, the Company's President and Chief Executive Officer stated "While customers continued to be cautious in starting new projects in the data and analytics space, our IT Staffing Services segment saw a material increase in new assignment opportunities during the quarter. The increase in D&A bookings, particularly in the latter part of the quarter, gives us confidence that the Data and Analytics segment is well positioned for meaningful growth for the year."

Further commenting on the data & analytics marketplace, Paul Burton, the Chief Executive of the Company's Data & Analytics Services segment, said, "We are seeing encouraging signs that customers are becoming more comfortable commencing new projects. We believe this trend, combined with pent-up global demand, positions the segment for strong revenue growth for the remainder of the year as compared to 2020."

Commenting on the Company's financial position, Jack Cronin, Mastech Digital's Chief Financial Officer, stated, "At March 31, 2021 we had cash balances on hand of $7.2 million, no borrowings under our revolving credit facility, and cash availability of approximately $25 million."

For earnings history and earnings-related data on Mastech Digital (MHH) click here.

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