Myers Industries (NYSE:MYE) Issues Earnings Results, Misses Estimates By $0.13 EPS

Key Points

• Myers Industries reported third-quarter EPS of $0.32, missing estimates by $0.13, while revenue rose 8.1% year over year to $171.34 million and exceeded analyst expectations.
• Gross margins deteriorated due to a 76% increase in resin costs, unfavorable product mix and maintenance issues, though management expects significant sequential improvement in the fourth quarter as pricing actions take effect.
• The company strengthened its balance sheet through the Myers Tire Supply divestiture, reducing net debt by $28.5 million and lowering leverage to 1.86 times; however, it lowered its vehicle-market outlook amid weak RV demand and delayed automotive launches.

Myers Industries (NYSE:MYE - Get Free Report) released its quarterly earnings data on Thursday. The industrial products company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.13), FiscalAI reports. Myers Industries had a net margin of 4.86% and a return on equity of 19.86%. The company had revenue of $171.34 million during the quarter, compared to analyst estimates of $163.80 million. During the same quarter in the prior year, the company posted $0.19 EPS.

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

Shares of Myers Industries stock traded down $1.93 during midday trading on Thursday, hitting $30.27. The company had a trading volume of 943,315 shares, compared to its average volume of 239,245. Myers Industries has a 1-year low of $16.46 and a 1-year high of $37.45. The business's 50 day simple moving average is $31.54 and its two-hundred day simple moving average is $26.50. The stock has a market cap of $1.14 billion, a PE ratio of 31.20 and a beta of 0.83. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.61 and a quick ratio of 1.21.

Myers Industries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 6th. Stockholders of record on Friday, December 4th will be issued a dividend of $0.1350 per share. The ex-dividend date is Friday, December 4th. This represents a $0.54 dividend on an annualized basis and a dividend yield of 1.8%. Myers Industries's payout ratio is 55.67%.

Myers Industries News Roundup

Here are the key news stories impacting Myers Industries this week:

• Positive Sentiment: Myers Industries reported third-quarter revenue of approximately $171.3 million, up 8.1% year over year and above the $163.8 million analyst consensus. Infrastructure revenue rose 38%, while Food & Beverage revenue increased 12%. Myers Industries Revenue Rises 8.1% to $171.3 Million in Third Quarter
• Positive Sentiment: The company expects significant sequential margin improvement in the fourth quarter as pricing actions take effect and resin costs stabilize. Operating cash flow was $17.4 million, and total liquidity stood at $254.7 million. Myers Industries Announces 2026 Third Quarter Results
• Positive Sentiment: Myers outlined plans to expand Signature capacity by 30% in 2027 and another 30% in 2029, targeting approximately $60 million in incremental revenue through 2029. Myers outlines Signature capacity expansions
• Negative Sentiment: Adjusted third-quarter EPS was $0.32, below the $0.45 consensus estimate. Gross profit fell 5.0% to $46.8 million, gross margin contracted to 27.3% from 31.1%, and the company recorded a $0.9 million net loss versus $7.1 million of net income a year earlier. Myers Industries Slips to Loss in Q3

Analyst Ratings Changes

MYE has been the subject of several recent research reports. Weiss Ratings upgraded Myers Industries from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday. Wall Street Zen cut Myers Industries from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, October 20th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $37.00.

About Myers Industries

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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