Matrix Service Company’s (MTRX) share price appears to have found a short-term bottom, rebounding from a key level and climbing more than 50% in the last 3 weeks. In the meantime, estimates have held in higher ground, creating a value opportunity for a stock operating in a growth sector.

Company Description

Matrix Service Company provides construction, repair and maintenance services to the energy industry. The company was founded in 1989, has a market cap of $301 million and is headquartered in Tulsa, Oklahoma.

First-Quarter Results

Matrix reported awesome second-quarter results on Oct 2 that demonstrate the strong demand energy services companies continue to enjoy.

Revenue was up 16% from last year to $186.7 million. Net income increased 50% to $9.5 million. This produced earnings of 36 cents per share, 6 cents ahead of estimates.

Consistent Earnings

With oil prices remaining in elevated territory, Matrix has surprised and beaten estimates in each of the last 2 quarters.

A Strategic Acquisition

During the call Matrix also announced that it plans to buy engineering and construction resources, as well as acquire 70 employees from Chicago Bridge & Iron Co. The deal will provide Matrix with an additional backlog of $20 million in cost-plus contracts and is expected to close in the second quarter of 2009.

Guidance and Estimates

After the solid quarter, Matrix reaffirmed its full-year earnings guidance between $1.35 and $1.60 per share.

Analysts are bullish on the longer-term prospects of Matrix, with the next-year estimate pegged at $1.76 per share, a 16% earnings growth projection.

The Chart

After trading lower over the last few months with crude, shares of MTRX recently found a short-term bottom and began to rebound. With this stock trading lower and estimates holding in higher ground, this provides a unique value opportunity for a stock operating in a high-demand sector.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

1. (LG) – Laclede Group – fourth time in the last four quarters that the company has surprised and beaten estimates by 87% on averageLaclede Group, Inc. (LG) just posted a new 52-week and all-time high, as the company...
2. (PETS) – Petmed Express – fourth time in the last four quarters that Petmed has surprised and beaten analyst estimatesPetmed Express, Inc. (PETS) shares are trading down from their 2008 high, but still remain...
3. (LG) – Laclede Group – fourth time in the last four quarters that the company has surprised and beaten estimates by 87% on averageLaclede Group, Inc. (LG) just posted a new 52-week and all-time high, as the company...
4. (LG) – Laclede Group – fourth time in the last four quarters that the company has surprised and beaten estimates by 87% on averageLaclede Group, Inc. (LG) just posted a new 52-week and all-time high, as the company...
5. (LG) – Laclede Group – fourth time in the last four quarters that the company has surprised and beaten estimates by 87% on averageLaclede Group, Inc. (LG) just posted a new 52-week and all-time high, as the company...
6. (AKS) – AK Steel Holding Corp – surprised and beaten analyst estimates in the last four quarters by an average 22.25%AK Steel Holding Corp.’s (AKS) share price has recently slid lower, but that is not...

Search Posts by Tag: MTRX | VitalStocks | Heavy Construction | Industrial Goods

RSS Feeds by Tag: MTRX | VitalStocks | Heavy Construction | Industrial Goods |

Other Posts by: Shawn | RSS Feed for this author