Q: Quite a reaction to the latest earnings report. Seems a bit overdone, is this an entry opportunity?
5i Research Answer:
Revenue at MATR was $315 mln vs $308.7 mln expected while EPS of $0.05 missed expectations of $0.35 and a weak Q4 guidance on weaker macroeconomic activity. The stock reaction was maybe a bit harsh, with shares now trading at 13X forward earnings but it might take another quarter or two to show that things have stabilized in the business. We think it is a name to watch but might give it a bit more time still to settle in.