Matthews International (NASDAQ:MATW – Get Free Report) posted its earnings results on Friday. The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.35), Zacks reports. Matthews International had a negative net margin of 2.65% and a positive return on equity of 4.46%. The company had revenue of $246.02 million for the quarter, compared to the consensus estimate of $264.54 million.
Here are the key takeaways from Matthews International’s conference call:
- Fiscal third-quarter results weakened materially: Matthews reported a $23.7 million net loss, or $0.75 per share, versus net income of $15.4 million a year earlier. Sales fell to $246 million from $349 million, while adjusted EBITDA declined to $35 million from $44.6 million, primarily due to engineering weakness and recent divestitures.
- The company reduced full-year adjusted EBITDA guidance to $158 million-$162 million, citing delayed engineering orders, continued energy-storage industry overcapacity, lower-than-expected mortality volumes, rising material and labor costs, tariffs, and delayed Propelis synergies.
- Memorialization sales increased 2.1% to $208.1 million, but adjusted EBITDA slipped to $42.2 million as historically low U.S. death rates and higher copper, steel, fuel, and labor costs offset price increases; management also observed some customer migration toward lower-priced products.
- Matthews is restructuring its European engineering operations to reduce annual costs by approximately $10 million and is evaluating strategic alternatives for the business. Management expects improvement in fiscal 2027 but acknowledged that German labor regulations may delay the savings.
- Management remains optimistic about longer-term growth opportunities: DBE battery technology testing interest is reportedly at record levels, Propelis is still expected to reach a $130 million annualized EBITDA run rate by the end of calendar 2026, and Axion printhead systems are converting beta customers while a new Linx partnership expands access to U.K. and French markets.
Matthews International Stock Performance
MATW traded down $3.96 during trading on Friday, hitting $23.70. The stock had a trading volume of 2,208,081 shares, compared to its average volume of 246,361. The firm has a market cap of $739.44 million, a PE ratio of 37.38 and a beta of 1.09. Matthews International has a 12 month low of $21.95 and a 12 month high of $30.93. The company has a current ratio of 1.64, a quick ratio of 0.97 and a debt-to-equity ratio of 1.12. The company has a 50 day simple moving average of $26.73 and a 200-day simple moving average of $26.58.
Matthews International Dividend Announcement
Institutional Investors Weigh In On Matthews International
A number of hedge funds have recently bought and sold shares of the company. Ameriprise Financial Inc. increased its stake in shares of Matthews International by 9.0% in the second quarter. Ameriprise Financial Inc. now owns 1,664,426 shares of the company’s stock worth $39,796,000 after purchasing an additional 137,015 shares during the period. Dimensional Fund Advisors LP boosted its stake in Matthews International by 2.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,530,341 shares of the company’s stock valued at $39,973,000 after purchasing an additional 29,865 shares during the period. Private Capital Management LLC boosted its stake in Matthews International by 201.1% during the 4th quarter. Private Capital Management LLC now owns 1,018,587 shares of the company’s stock valued at $26,605,000 after purchasing an additional 680,256 shares during the period. Steel Partners Holdings L.P. acquired a new stake in Matthews International in the 4th quarter valued at approximately $20,084,000. Finally, Geode Capital Management LLC grew its holdings in Matthews International by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 740,854 shares of the company’s stock valued at $19,354,000 after buying an additional 2,561 shares during the last quarter. 83.08% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth
A number of research analysts have recently commented on the company. Wall Street Zen lowered Matthews International from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. Weiss Ratings restated a “sell (d+)” rating on shares of Matthews International in a report on Monday. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Matthews International currently has a consensus rating of “Reduce”.
Read Our Latest Analysis on MATW
About Matthews International
Matthews International Corporation (NASDAQ:MATW) is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.
In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.
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