Diversified solutions provider Matthews International (NASDAQ:MATW) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
Matthews beat analysts’ revenue expectations last quarter, reporting revenues of $258.6 million, down 39.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Matthews a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Matthews’s revenue to decline 24.3% year on year, a further deceleration from the 18.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Matthews has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Matthews’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Service International delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 1.8%, and ADT reported revenues up 2%, topping estimates by 1.8%. Service International’s stock price was unchanged after the resultswhile ADT was up 3.2%.
Read our full analysis of Service International’s results here and ADT’s results here.
Investors in the consumer discretionary - specialized consumer services segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Matthews is up 5.2% during the same time and is heading into earnings with an average analyst price target of $38 (compared to the current share price of $27.90).
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