Mistras Q1 Profit Rises; Shares Up 16%

(RTTNews) - Mistras Group Inc. (MG) Wednesday reported an increase in profit for the first quarter, driven largely by revenue growth and higher gross margins. Moving ahead, the infrastructure testing company maintained its full-year revenue outlook. Shares of the company surged a near 16 percent in the after-hours trading.

Princeton Junction, New Jersey-based Mistras' first-quarter profit rose to $6.87 million or $0.23 per share from $1.67 million or $0.06 per share last year.

Analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 8 percent to $179.85 million from $166.57 million last year. Analysts had a consensus revenue estimate of $163.47 million for the quarter.

Higher revenues were driven by organic revenue growth, as each of three segments achieved organic revenue growth of more than 5 percent.

Gross margins improved to 28.5 percent from the prior year's 25.2 percent last year.

The company also authorized a stock repurchase program of up to $50 million.

Moving ahead, the company maintained its revenue guidance of $710 million to $725 million. Analysts currently estimate revenues of $716.87 million for the quarter.

MG closed Wednesday's trading at $14.23, up $0.42 or 3.04%, on the NYSE. The stock further gained $2.27 or 15.95% in the after-hours trade.