Myers Industries (NYSE:MYE – Get Free Report) posted its earnings results on Thursday. The industrial products company reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13), FiscalAI reports. Myers Industries had a return on equity of 20.34% and a net margin of 3.99%. The business had revenue of $171.34 million for the quarter, compared to analyst estimates of $163.80 million. During the same period in the previous year, the firm posted $0.19 earnings per share.
Here are the key takeaways from Myers Industries’ conference call:
- Third-quarter revenue increased 8.1% year over year, led by 38% growth in infrastructure and 12% growth in food and beverage; excluding exited low-margin products, revenue growth was 10.4%.
- Adjusted gross margin fell 360 basis points to 28.2% because of a 76% spike in resin costs, unfavorable mix, and unplanned maintenance. Management expects pricing actions and stabilized resin costs to drive significant sequential margin improvement in the fourth quarter.
- The Myers Tire Supply divestiture reduced net debt by $28.5 million, lowering net leverage to 1.86 times, while year-to-date free cash flow rose 29% to $61.9 million.
- Management raised its food and beverage outlook to strong growth and expects infrastructure to maintain strong growth, while Signature is projected to deliver mid- to high-teens annual revenue growth through 2029 through composite-mat conversion, new products, and capacity expansion.
- The company lowered its vehicle-market outlook from stable to down, citing declining RV demand, higher interest rates and fuel prices, weak consumer confidence, and delayed automotive OEM launches; military demand is also expected to face near-term timing-related headwinds.
Myers Industries Stock Performance
NYSE MYE traded down $0.73 on Friday, reaching $29.66. The stock had a trading volume of 603,758 shares, compared to its average volume of 271,040. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.89 and a quick ratio of 1.21. The firm has a fifty day moving average of $31.46 and a two-hundred day moving average of $26.55. Myers Industries has a 1-year low of $16.46 and a 1-year high of $37.45. The company has a market cap of $1.12 billion, a P/E ratio of 39.03 and a beta of 0.83.
Myers Industries Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 6th. Shareholders of record on Friday, December 4th will be issued a $0.1350 dividend. This represents a $0.54 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Friday, December 4th. Myers Industries’s dividend payout ratio is currently 71.05%.
Wall Street Analysts Forecast Growth
MYE has been the subject of a number of research analyst reports. Wall Street Zen cut shares of Myers Industries from a “buy” rating to a “hold” rating in a research report on Saturday. Weiss Ratings upgraded shares of Myers Industries from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Myers Industries currently has an average rating of “Moderate Buy” and an average price target of $37.00.
Check Out Our Latest Analysis on MYE
Key Headlines Impacting Myers Industries
Here are the key news stories impacting Myers Industries this week:
- Positive Sentiment: Third-quarter revenue increased 8.1% year over year to $171.3 million, exceeding analysts’ expectations of approximately $163.8 million. Infrastructure revenue rose 38%, while Food & Beverage revenue grew 12%. Myers Industries Revenue Rises 8.1% to $171.3 Million in Third Quarter
- Positive Sentiment: Management expects significant sequential margin improvement in the fourth quarter as pricing actions take effect and resin costs stabilize. The company also outlined Signature capacity expansions of 30% in 2027 and another 30% in 2029, potentially supporting about $60 million of incremental revenue through 2029. Myers outlines Signature capacity expansions
- Neutral Sentiment: Myers reported $17.4 million of operating cash flow, $5.9 million of capital expenditures and total liquidity of $254.7 million, including $53.5 million in cash. These figures provide financial flexibility, although investors are focused more immediately on margin recovery. Myers Industries Reports Third-Quarter Results
- Negative Sentiment: Adjusted earnings per share were $0.32, below the $0.45 consensus estimate. Net income fell to a $0.9 million loss, or $0.02 per diluted share, from $7.1 million of profit a year earlier. Gross profit declined 5.0% to $46.8 million, and gross margin contracted to 27.3% from 31.1%. Myers Industries Sinks as Resin Costs Squeeze Margins
Myers Industries Company Profile
Myers Industries, Inc is a manufacturer and distributor of products serving industrial, agricultural, automotive, commercial and consumer markets. Founded in 1933 and headquartered in Akron, Ohio, the company operates primarily in North America.
Through its material-handling businesses, Myers Industries produces reusable plastic containers, totes, pallets, drums, tanks and other molded products. These products are used to store, transport and protect materials across industries such as manufacturing, food processing, agriculture, healthcare and logistics.
The company also distributes tire-service supplies, equipment and related products to tire dealers, retreaders, commercial fleets and automotive service providers.
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