Materion Corp Earnings: Here’s Why Investors Don’t Like These Results

Materion Corporation (NYSE:MTRN) delivered a profit and beat Wall Street’s expectations, BUT 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 3.59%.

Materion Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.16% to $0.43 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 5.84% to $306.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Materion Corporation reported adjusted EPS income of $0.43 per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $323.65 million.

Quoting Management: Richard J. Hipple, Chairman, President and CEO, stated, “I am pleased with the significant sequential improvement in the second quarter earnings, particularly in the Beryllium and Composites segment. This improvement, along with higher shipments into the medical market, is expected to enhance profitability in the second half of 2013. Our confidence in our ability to generate strong cash flow enabled us to increase our quarterly dividend announced in early May of this year. We remain focused on the profitable growth of our business and enhancing shareholder value.”

Key Stats (on next page)…

Revenue increased 2.32% from $299.17 million in the previous quarter. EPS increased 30.3% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.54 and has not changed. For the current year, the average estimate has moved down from a profit of $1.86 to a profit of $1.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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