Matthews International (NASDAQ:MATW) Shares Gap Down Following Weak Earnings

Key Points

• Matthews International shares fell sharply after the company reported quarterly earnings of $0.06 per share, well below the $0.41 analyst consensus. Revenue of $246.02 million also missed expectations of $264.54 million.
• The company declared a quarterly dividend of $0.255 per share, equivalent to $1.02 annually and a 4.3% yield. However, its dividend payout ratio stands at a high 329.03%.
• Analyst sentiment is cautious, with ratings of Hold and Sell producing a consensus “Reduce” recommendation. Institutional investors own 83.08% of the stock, while the shares trade at a price-to-earnings ratio of 77.02.

Shares of Matthews International Corporation (NASDAQ:MATW - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $27.66, but opened at $24.00. Matthews International shares last traded at $24.13, with a volume of 138,086 shares traded.

The company reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.41 by ($0.35). The firm had revenue of $246.02 million during the quarter, compared to the consensus estimate of $264.54 million. Matthews International had a return on equity of 5.88% and a net margin of 0.80%.

Matthews International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 10th will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date is Monday, August 10th. Matthews International's dividend payout ratio is presently 329.03%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Weiss Ratings restated a "sell (d+)" rating on shares of Matthews International in a research report on Monday. Wall Street Zen downgraded Matthews International from a "buy" rating to a "hold" rating in a research note on Sunday, May 10th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce".

Institutional Trading of Matthews International

Several hedge funds have recently bought and sold shares of the stock. Steel Partners Holdings L.P. purchased a new position in Matthews International during the 4th quarter valued at approximately $20,084,000. Private Capital Management LLC raised its holdings in shares of Matthews International by 201.1% during the 4th quarter. Private Capital Management LLC now owns 1,018,587 shares of the company's stock worth $26,605,000 after acquiring an additional 680,256 shares in the last quarter. Simcoe Capital Management LLC bought a new position in shares of Matthews International during the 4th quarter valued at approximately $8,763,000. Cannell Capital LLC bought a new position in shares of Matthews International during the 2nd quarter valued at approximately $5,926,000. Finally, Focus Partners Wealth purchased a new position in shares of Matthews International in the fourth quarter valued at $5,242,000. Hedge funds and other institutional investors own 83.08% of the company's stock.

Matthews International Stock Performance

The business's fifty day moving average is $26.78 and its two-hundred day moving average is $26.60. The stock has a market capitalization of $744.42 million, a PE ratio of 77.02 and a beta of 1.09. The company has a quick ratio of 0.97, a current ratio of 1.64 and a debt-to-equity ratio of 1.12.

Matthews International Company Profile

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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