Materion Corporation (MTRN) Plummets on Poor Q3 Guidance

Michael Teague  |

Materion Corporation (MTRN) , the $665 million US-based metals and mining company, reported drastically lower guidance for its upcoming third-quarter earnings report that sent shares tumbling on Monday morning heading towards the closing bell.

While analysts covering the company had expected earnings per share from the soon-to-end period at $0.39, Materion’s revision amounts to just a nudge over half of that, at $0.20 per share.

The company cited a number of factors for the disappointing announcement, the most prominent of which can be attributed to a slowdown in sales, particularly shipments of some high-margin defense products. No comment was offered on whether or not the lack of orders has anything to do with the lingering effects of sequestration that was implemented earlier in the year, nor if the current impasse and government shutdown have contributed to the underwhelming earnings report that is expected.

The company tried to put a positive spin on the early release of pretty bad news, however, saying that its fourth quarter should be the strongest of the year, with EPS expected to exceed the $0.43 posted by Materion during Q2.

Materion’s CEO and Chairman Richard Hipple provided his own assessment of the situation with today’s news, saying: “In spite of the unexpected weakness visible in the order book and the noted unexpected delay of specific high-margin shipments that occurred in the third quarter, I am encouraged by the progress in the new beryllium pebble plant and our new product initiatives. These, along with improving overall market conditions and the lower cost structure, should result in significantly improved earnings in 2014.”

Shares had dropped over 10 percent to $29 a piece, still $10 above the stock’s 52-week low.

 

[Image Courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MTRN Materion Corporation 46.57 1.33 2.94 13,768 Trade
CIGEF China Green Holdings Ltd (New) 0.01 0.00 0.00 0

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

Can the Media Solve the Partisan Conflict?

Andrew McCarthy, Contributing Editor, The National Review; Michael Zeldin, CNN Legal Analyst; Celeste Katz, Senior Political Reporter, Glamour; Silvia Davi, SVP, Contributing Editor, Equities.com; and Doug Simon, CEO, D S Simon Media discuss how the media’s role has shaped the landscape for communicators and what the media is trying to do to reduce discord in society.

Emerging Growth

Permanent Techs Inc

Permanent Technologies Inc engages in the design and manufacture of multi-faceted, vibration-proof, self-locking nut and bolt systems for use in the fastener industry in the United States. The Company also…