Industrial construction and maintenance company Matrix Service (NASDAQ: MTRX) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
Matrix Service missed analysts’ revenue expectations last quarter, reporting revenues of $206.7 million, up 3.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.
Is Matrix Service a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Matrix Service’s revenue to grow 14.2% year on year, in line with the 14.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Matrix Service has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Matrix Service’s peers in the construction and maintenance services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tutor Perini delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 4.4%, and MYR Group reported revenues up 20.1%, topping estimates by 8.3%. Tutor Perini traded up 13.3% following the results while MYR Group was also up 2.7%.
Read our full analysis of Tutor Perini’s results here and MYR Group’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the construction and maintenance services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.8% on average over the last month. Matrix Service is down 9.6% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $10.81).
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