Mistras Group Q3 Profit Rises

(RTTNews) - Mistras Group Inc. (MG) Wednesday reported an increase in profit for the third quarter, driven largely by revenue growth, even as gross margins dropped. Moving ahead, the infrastructure testing company expects full year revenues at the low-end of its outlook.

Princeton Junction, New Jersey-based Mistras' third-quarter profit rose to $1.8 million or $0.06 per share from $1.2 million or $0.04 per share last year.

Excluding acquisition-related items, adjusted earnings were $0.2 million or $0.01 per share. On average, analysts polled by Thomson Reuters expected earnings of $0.10 per share for the third quarter. Analysts' estimates typically exclude special items.

Mistras said its revenues for the third quarter rose 7.5 percent to $163.1 million from $151.7 million a year ago. Analysts had a consensus revenue estimate of $168.8 million.

Chief Executive Sotirios Vahaviolos said, "After experiencing three consecutive quarters of over 20% year-on-year revenue growth, market conditions and customer sentiment have changed dramatically in recent months, driven by the significant drop in the price of oil."

Gross margin for the third quarter dropped to 23.7 percent from 25.9 percent year.

Looking forward, the company expects fiscal-year 2015 revenues at the low end of its $720 million to $740 million guidance range. Analysts currently expect revenues of $736.86 million for 2015.

MG closed Wednesday's trading at $19.20, up $0.37 or 1.96%, on the NYSE. The stock further dropped $0.62 or 3.23% in the after-hours trade.