Matrix Service Company (NASDAQ:MTRX) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders will be ecstatic, with their stake up 37% over the past week following Matrix Service Company's (NASDAQ:MTRX) latest quarterly results. It looks like a moderately negative result overall with revenues falling 13% short of analyst estimates at US$175m. Statutory losses were US$0.10 per share, roughly in line with what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Matrix Service
After the latest results, the two analysts covering Matrix Service are now predicting revenues of US$809.7m in 2024. If met, this would reflect a satisfactory 5.8% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.25. Before this earnings announcement, the analysts had been modelling revenues of US$846.4m and losses of US$0.015 per share in 2024. While this year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The average price target was broadly unchanged at US$17.00, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Matrix Service's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.3% annually. So it looks like Matrix Service is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Matrix Service. They also downgraded Matrix Service's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Matrix Service .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
