Matthews International (NASDAQ:MATW) Issues Quarterly Earnings Results

Matthews International (NASDAQ:MATW) issued its earnings results on Friday. The company reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.35), Zacks reports. Matthews International had a net margin of 0.80% and a return on equity of 5.88%. The company had revenue of $246.02 million during the quarter, compared to analysts’ expectations of $264.54 million.

Here are the key takeaways from Matthews International’s conference call:

• Fiscal third-quarter results weakened materially: Matthews reported a $23.7 million net loss, or $0.75 per share, versus net income of $15.4 million a year earlier. Sales fell to $246 million from $349 million, while adjusted EBITDA declined to $35 million from $44.6 million, primarily due to engineering weakness and recent divestitures.
• The company reduced full-year adjusted EBITDA guidance to $158 million-$162 million, citing delayed engineering orders, continued energy-storage industry overcapacity, lower-than-expected mortality volumes, rising material and labor costs, tariffs, and delayed Propelis synergies.
• Memorialization sales increased 2.1% to $208.1 million, but adjusted EBITDA slipped to $42.2 million as historically low U.S. death rates and higher copper, steel, fuel, and labor costs offset price increases; management also observed some customer migration toward lower-priced products.
• Matthews is restructuring its European engineering operations to reduce annual costs by approximately $10 million and is evaluating strategic alternatives for the business. Management expects improvement in fiscal 2027 but acknowledged that German labor regulations may delay the savings.
• Management remains optimistic about longer-term growth opportunities: DBE battery technology testing interest is reportedly at record levels, Propelis is still expected to reach a $130 million annualized EBITDA run rate by the end of calendar 2026, and Axion printhead systems are converting beta customers while a new Linx partnership expands access to U.K. and French markets.

Matthews International Price Performance

NASDAQ:MATW traded down $3.96 during trading hours on Friday, reaching $23.70. 2,207,581 shares of the company traded hands, compared to its average volume of 259,538. The firm’s 50-day moving average is $26.78 and its 200-day moving average is $26.60. The stock has a market cap of $739.49 million, a P/E ratio of 76.45 and a beta of 1.09. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.64 and a quick ratio of 0.97. Matthews International has a 1-year low of $21.95 and a 1-year high of $30.93.

Matthews International Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.255 per share. 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 329.03%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Wall Street Zen lowered Matthews International from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Matthews International in a research note on Monday. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce”.

Institutional Trading of Matthews International

Several institutional investors and hedge funds have recently made changes to their positions in MATW. US Bancorp DE lifted its position in shares of Matthews International by 45.9% in the third quarter. US Bancorp DE now owns 2,063 shares of the company’s stock valued at $50,000 after acquiring an additional 649 shares in the last quarter. Tower Research Capital LLC TRC increased its position in Matthews International by 187.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,885 shares of the company’s stock worth $69,000 after purchasing an additional 1,880 shares in the last quarter. Tripletail Wealth Management LLC raised its stake in Matthews International by 206.5% in the 4th quarter. Tripletail Wealth Management LLC now owns 2,820 shares of the company’s stock valued at $73,000 after purchasing an additional 1,900 shares during the last quarter. BNP Paribas Financial Markets raised its stake in Matthews International by 51.6% in the 2nd quarter. BNP Paribas Financial Markets now owns 3,080 shares of the company’s stock valued at $74,000 after purchasing an additional 1,048 shares during the last quarter. Finally, Smartleaf Asset Management LLC lifted its holdings in Matthews International by 25.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 3,445 shares of the company’s stock valued at $84,000 after purchasing an additional 689 shares in the last quarter. 83.08% of the stock is currently owned by hedge funds and other institutional investors.

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.