Q: Peter and His Wonder Team
Please give your opinion on this quarterly report. It looks great to me...but am I missing something. I own the stock and am up. Not sure if this is a time to buy on strength...be happy and cash in...or just be cautious and hold. Your opinion is always respected before I take full responsibility for my decisions. Thanks as always!
Please give your opinion on this quarterly report. It looks great to me...but am I missing something. I own the stock and am up. Not sure if this is a time to buy on strength...be happy and cash in...or just be cautious and hold. Your opinion is always respected before I take full responsibility for my decisions. Thanks as always!
5i Research Answer:
The stock slipped on Thursday but is still higher for this week. EPS of 19c missed estimates of 28c. Revenue of $400M was 9% ahead of estimates. Pipeline and pipe services revenue rose 73%; other divisions were in the 12% range. Backlog did decrease 12% to $1.15B. Cash flow was $31M vs negative $9M last year. MATR bought back $5.2M in stock in the quarter. The stock has been very strong, with big EPS gains this year. Next year growth is expected to slow. The balance sheet is fine with net debt about 0.5X cash flow. We might see some profit-taking on the miss, but at 8X earnings valuation we think it looks OK still. We think HOLD is the right call here.