Matrix Service Company (NASDAQ:MTRX) Just Reported, And Analysts Assigned A US$17.00 Price Target
As you might know, Matrix Service Company (NASDAQ:MTRX) last week released its latest third-quarter, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$200m missing analyst predictions by 6.9%. Worse, the business reported a statutory loss of US$0.12 per share, much larger than the analysts had forecast prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
We check all companies for important risks. See what we found for Matrix Service in our free report.
Taking into account the latest results, the consensus forecast from Matrix Service's two analysts is for revenues of US$1.01b in 2026. This reflects a huge 36% improvement in revenue compared to the last 12 months. Matrix Service is also expected to turn profitable, with statutory earnings of US$1.08 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.05b and earnings per share (EPS) of US$1.04 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
Check out our latest analysis for Matrix Service
The consensus price target fell 5.6% to US$17.00, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Matrix Service's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Matrix Service is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2026. If achieved, this would be a much better result than the 6.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.7% annually. So it looks like Matrix Service is expected to grow faster than its competitors, at least for a while.
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Matrix Service's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Matrix Service's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Matrix Service. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Matrix Service going out as far as 2027, and you can see them free on our platform here.
You can also see our analysis of Matrix Service's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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