Mistras Group Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

Mistras Group (NYS: MG) reported earnings on April 4. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Feb. 29 (Q3), Mistras Group beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.


Gross margins contracted, operating margins grew, net margins contracted.

Revenue details
 Mistras Group logged revenue of $104.1 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $97.5 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $79.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.11. The seven earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.11 for Q3 were 22% higher than the prior-year quarter's $0.09 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 32.2%, 70 basis points worse than the prior-year quarter. Operating margin was 6.1%, 20 basis points better than the prior-year quarter. Net margin was 2.9%, 20 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $124.1 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $432.8 million. The average EPS estimate is $0.81.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 20 members out of 26 rating the stock outperform, and six members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Mistras Group a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mistras Group is hold, with an average price target of $26.67.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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