Shares of Materion Corporation (NYSE:MTRN) surged over 24% on Thursday despite mixed results for the fourth quarter of 2022. The company’s quarterly performance benefitted from strong demand for its products and the acquisition of HCS-Electronic Materials (completed in November 2021).
Materion produces high-performance engineered materials used in a variety of electrical, electronic, thermal, and structural applications.
Adjusted earnings per share (EPS) of $1.49 exceeded the Street’s expectations of $1.41 and increased 32% year-over-year. Also, the company’s Q4 revenues rose 9.4% to $434.6 million, missing analysts’ expectations of $439.4 million.
Materion witnessed about 30% growth in organic value-added sales, driven by strong performance in the industrial, energy, and aerospace markets.
The company reported Q4 adjusted EBITDA of $55.6 million, up considerably from $39.8 million in the same quarter last year. The growth can be attributed to higher volumes and favorable pricing, which more than offset inflationary impacts.
2023 Outlook
Looking forward, Materion expects full-year 2023 adjusted EPS in the range of $5.50 to $5.90, compared with $5.27 reported in 2022.
Materion President and CEO Jugal Vijayvargiya said, “The combination of our organic and inorganic initiatives has led to eleven consecutive quarters of top-line growth and has positioned us well to continue our growth trajectory in 2023.”
Is MTRN Stock a Buy?
Based on a single Buy rating by Keybanc analyst Philip Gibbs, MTRN stock has a Moderate Buy consensus rating. The stock’s price target of $92 implies 16.4% downside potential from the current level.
