Why Matrix Service Stock Dived by Almost 14% on Wednesday

Key Points

• The company posted a surprise net loss in its latest quarter.

• It did, however, notch a double-digit increase in revenue.

• 10 stocks we like better than Matrix Service ›

Matrix Services (NASDAQ: MTRX) stock couldn't surmount the hump that was Hump Day. On the back of a quarterly earnings report that didn't meet expectations, the shares were unpopular and ultimately closed the day nearly 14% lower. And that was during a trading session that saw the S&P 500 (SNPINDEX: ^GSPC) rise by 0.3%.

Unexpected bottom-line result

For its fiscal fourth quarter of 2025, Matrix earned revenue of just over $216 million, for a 14% increase year over year. The dynamic was notably different on the bottom line, however, as the company exactly doubled its non-GAAP (generally accepted accounting principles) adjusted net loss over that stretch. It came in at $7.8 million ($0.28 per share) against the $3.9 million deficit of last year's fourth quarter.

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On average, analysts tracking Matrix stock were expecting far better. Their consensus estimate for revenue was more than $286 million, and collectively, they were expecting an adjusted net income figure of $0.33 per share.

In its earnings release, Matrix attributed the higher revenue number to several factors, chiefly a 6% rise in total project awards. This, in turn, derived from strong demand, particularly within the company's utility and power infrastructure segment.

On the downside, the bottom line was affected by items such as a charge related to labor cost overruns on a project in the oil industry, and restructuring expenses.

Revenue guidance miss

Now that it's entered a new fiscal year, Matrix proffered annual revenue guidance for the period. It's expecting to earn $875 million to $925 million. However, that's notably short of the average $945.5 million projected by analysts.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.