Mistras Group Q3 Profit Down - Update

(RTTNews) - Mistras Group Inc. (MG) Tuesday reported a drop in profit for the third quarter, as higher expenses offset a 13 percent growth in revenues. Moving ahead, the infrastructure testing company lifted the lower-end of its revenue outlook for the full year 2014. Shares of the company were down four percent in after-hours trading.

Princeton Junction, New Jersey-based Mistras' third-quarter profit dropped to $1.2 million or $0.04 per share from $2.8 million or $0.09 per share last year.

Adjusted earnings for the quarter were $1.8 million or $0.06 per share. On average, six analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Mistras said its revenues for the quarter grew 13.5 percent to $151.7 million from $133.66 million last year. Analysts expected revenues of $142.66 million.

Mistras said its bottom line was weighed down by shut-downs of numerous customer work sites due to bad weather, start-up costs related to two important contracts, other one-time costs and weak international results.

Chief Executive Sotirios Vahaviolos said, "Our third quarter results and organic revenue growth for Services were strong, considering the magnitude of the adverse weather conditions and the start-up costs we incurred to fully staff-up for our recent contract win in Alaska and to prepare for a new contract that we just signed with a major integrated energy company with significant operations in the Canadian oil sands region."

Gross margin for the third quarter advanced to 25.9 percent from 25.6 percent last year.

Selling, general and administrative expenses for the quarter rose to $31.8 million from $27.2 million last year.

Looking forward to the full year 2014, the company now expects revenues of $600 million to $615 million, up from its prior guidance outlook of $590 million to $615 million. Analysts currently expect full-year revenues of $601.64 million.

MG closed Tuesday's trading at $22.18, up $0.53 or 2.45%, on the NYSE. The stock, however, dropped to $0.98 or 4.42% in after-hours trade.