Why Matrix Service Stock Soared 15% Tuesday

Energy supplier and mining industry The Matrix Service (MTRX 15.32%) was a bright ball of energy in the stock market on Tuesday. Its breaking news was a new set of quarterly earnings released after the close on Monday that featured a stunning beat on the bottom line. Investors rewarded the company by bidding its share price up more than 15% on Tuesday, a remarkable turnaround given the company’s modest 0.5% gain S&P 500 index that trading session.

A mixed quarter, but solid outlook for the future

In the fourth quarter of 2024, which ended June 30, Matrix Service posted revenue of less than $190 million. That was down from nearly $206 million in the same period in fiscal 2023. The company’s non-GAAP (adjusted) net loss deepened, but not by much, to $3.9 million ($0.14 per share) from a deficit a year ago of $3. million.

Analysts tracking the stock, on average, had expected a higher revenue figure of just under $203 million. However, they were also modeling for a significantly deeper adjusted net loss of $0.21 per share.

“We advanced work on several large projects during the quarter, which contributed to significant cash generation to close the fiscal year,” CEO John Hewitt said in the earnings release. “Just to remind you, we are still in the early stages of these multi-year projects.”

Estimated double-digit revenue percentage growth

Matrix Service said its core markets are doing well and demand for its goods should be strong. The company provided revenue guidance of $900 million to $950 million for the full fiscal year 2025. That’s comfortably above both the fiscal 2024 total of $728 million and analysts’ consensus estimate of slightly under $890 million.