Diversified solutions provider Matthews International (NASDAQ:MATW)
will be reporting earnings tomorrow afternoon. Here’s what to expect.
Matthews missed analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $401.8 million, down 10.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
This quarter, analysts are expecting Matthews’s revenue to decline 7.6% year on year to $435.6 million, a further deceleration from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 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. Matthews has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Matthews’s peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ADT delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 2%, and Pool reported a revenue decline of 4.4%, falling short of estimates by 2.5%. ADT’s stock price was unchanged after the results, while Pool was down 5.7%.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the specialized consumer services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.8% on average over the last month. Matthews is down 7% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $20.68).
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