Matthews International (NASDAQ:MATW) Posts Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• Earnings beat: Matthews reported $0.37 EPS for the quarter versus a $0.17 consensus (beat by $0.20), with a net margin of 1.64% and a return on equity of 5.95%.
• Dividend announced but high payout ratio: The company declared a $0.255 quarterly dividend (annualized $1.02) for a 3.6% yield and an ex-dividend date of May 11, though the dividend payout ratio is an elevated 143.66%, which may raise sustainability concerns.
• Market reaction and positioning: Shares rose about 2.7% to $28.54 on the news; Matthews has a market cap of $888.45M and a P/E of 40.2, analysts maintain a consensus "Hold" rating, and institutional investors own roughly 83% of the stock.

Matthews International (NASDAQ:MATW - Get Free Report) released its earnings results on Thursday. The company reported $0.37 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.20, Zacks reports. Matthews International had a net margin of 1.64% and a return on equity of 5.95%.

Matthews International Stock Up 2.7%

Matthews International stock traded up $0.76 during trading hours on Thursday, hitting $28.54. The company had a trading volume of 234,075 shares, compared to its average volume of 140,981. The firm has a market capitalization of $888.45 million, a P/E ratio of 40.20 and a beta of 1.12. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.51 and a quick ratio of 0.91. The firm's fifty day moving average is $26.21 and its 200-day moving average is $25.75. Matthews International has a fifty-two week low of $18.61 and a fifty-two week high of $29.11.

Matthews International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, May 25th. Shareholders of record on Monday, May 11th will be paid a $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 3.6%. The ex-dividend date is Monday, May 11th. Matthews International's dividend payout ratio is currently 143.66%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MATW. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Matthews International by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,686 shares of the company's stock valued at $393,000 after buying an additional 780 shares during the period. Jane Street Group LLC acquired a new position in Matthews International in the 1st quarter valued at approximately $1,227,000. Intech Investment Management LLC increased its stake in Matthews International by 316.4% in the 1st quarter. Intech Investment Management LLC now owns 59,502 shares of the company's stock valued at $1,323,000 after buying an additional 45,212 shares during the period. American Century Companies Inc. grew its position in Matthews International by 7.9% in the second quarter. American Century Companies Inc. now owns 64,988 shares of the company's stock worth $1,554,000 after acquiring an additional 4,742 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Matthews International in the second quarter worth approximately $1,406,000. Institutional investors and hedge funds own 83.08% of the company's stock.

Analysts Set New Price Targets

MATW has been the topic of a number of research reports. Weiss Ratings upgraded shares of Matthews International from a "sell (d)" rating to a "hold (c)" rating in a report on Friday, February 6th. Zacks Research upgraded shares of Matthews International from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold".

About Matthews International

Matthews International Corporation NASDAQ: MATW is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.

In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.

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