Matthews International Corporation (NASDAQ:MATW) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.
Matthews International Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.77% to $0.72 in the quarter versus EPS of $0.65 in the year-earlier quarter.
Revenue: Rose 10.21% to $250.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Matthews International Corporation reported adjusted EPS income of $0.72 per share. By that measure, the company missed the mean analyst estimate of $0.72. It missed the average revenue estimate of $253.67 million.
Quoting Management: In discussing the Company’s results for the quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
“Our consolidated results for the current quarter (on an adjusted basis) were in line with our internal expectations. The key demographics for Memorialization (U.S. death rates) continued to favorably affect this group as the operating results of the Funeral Home Products segment increased and our Cemetery Products sales improved with the seasonal increase in its markets. The Cremation segment also reported higher operating results in the U.S. for the recent quarter, which were offset by a decline in Europe and the impact of unusual charges.
Overall operating results for the Brand Solutions group improved for the current quarter. Our recent acquisitions are performing well and contributed to third quarter operating results. In addition, European markets were relatively stable overall for this group during the current quarter; however, recent softness in our U.S. and Chinese markets was a challenge. Several projects for this group anticipated for the third quarter were recently delayed.
“We continue to move forward with our cost-structure initiatives, as evidenced by the level of unusual charges. The benefits of these projects are expected to begin toward the end of next quarter and into fiscal 2014. Also, as we reported last quarter, the recent ERP implementation issues within our Cemetery Products business are behind us and we are now working to maximize the benefits of this system, including the launch of a new e‑services capability for our customers.
Mr. Bartolacci further stated: “In November 2012, we provided guidance that adjusted (non-GAAP) earnings per share were projected to be in the range of $2.45 to $2.55 for fiscal 2013. Based on our year-to-date fiscal 2013 operating results and our current forecasts, we are still projecting our adjusted results to be in this range.”
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