Industrial construction and maintenance company Matrix Service (NASDAQ: MTRX) will be reporting results tomorrow afternoon. Here’s what to look for.
Matrix Service beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $187.2 million, up 6.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations.
Is Matrix Service a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Matrix Service’s revenue to grow 29.5% year on year to $215.1 million, a reversal from the 11.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Matrix Service has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Matrix Service’s peers in the construction and maintenance services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Comfort Systems delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 4.2%, and Orion reported revenues up 17.4%, topping estimates by 8.8%. Comfort Systems traded up 5.6% following the results while Orion’s stock price was unchanged.
Read our full analysis of Comfort Systems’s results here and Orion’s results here.
There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 12.3% on average over the last month. Matrix Service is up 25.6% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $12.68).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
