Here is why Matrix Service Company (MTRX) stock slid down on Tuesday?

0
385
SPRO Stock
SPRO Stock

Matrix Service Company (MTRX) shares declined 8.33% in after-hours on Tuesday, December 28, 2021, and closed the daily trading at $6.27. Even in the regular trading session of Tuesday, MTRX’s stock lost 3.53%. MTRX shares have fallen 39.09% over the last 12 months, and they have moved up 3.95% in the past week. Over the past three months, the stock has lost 35.35%, while over the past six months, it has declined 33.27%.

Let’s have a brief look at its recent news.


Top 5 Cheap Stocks to Own Right Now

While finding safe stocks with the potential for monster gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Cheap Stock to Own Right Now", we have identified five stocks we believe could appreciate the most even if you just have $1,000 to invest.

Sign up here to get your free report now. .

Sponsored


>> 7 Top Picks for the Post-Pandemic Economy << 

MTRX removal from S&P SmallCap 600

On December 28, 2021, S&P Dow Jones Indices announced to remove Matrix Service Co. (MTRX) from the S&P SmallCap 600 effective before the opening of trading on Friday, December 31. Matrix Service is no longer representative of the small-cap market space.

Read More

MTRX latest financial results

On November 08, 2021, Matrix Service Company (MTRX), released financial results for its first quarter of fiscal 2022.

Q1 2022 financial highlights

  • MTRX reported total revenue of $168.1 million in Q1 2022 compared to $182.7 million in Q1 2021.
  • The total cost of revenue was $171.6 million in Q1 2022 compared to $168.4 million in Q1 2021.
  • Gross profit was negative $3.5 million in Q1 2022 compared to gross profit of $14.35 million in Q1 2021.
  • It suffered a net loss of $17.54 million in Q1 2022 compared to a net loss of $3.03 million in Q1 2021.
  • The company ended Q1 2022 with cash and cash equivalents of $34.7 million with no debt.

MTRX subsidiary won the contract

On October 20, 2021, Matrix Service Inc which is a subsidiary of Matrix Service Company (MTRX) was awarded the engineering, fabrication, and construction of seven (7) storage tanks at Calumet Specialty Products Partners, L.P. facility in Great Falls, Montana. The award was made in the first quarter of Fiscal 2022. The tanks are being constructed to support the production of up to 12,000 barrels per day of renewable fuels. Engineering related to the project will be completed by Matrix Service sister company, Matrix PDM Engineering.

MTRX subsidiary won multiple contracts

On October 13, 2021, Matrix NAC subsidiary of Matrix Service Company (MTRX) was awarded multiple contracts for electrical infrastructure work in the first quarter of Fiscal 2022. The total value of the contracts is approximately $50 million.

Matrix NAC has increased its Contractor of Choice (COC) relationships by seven, including those for substation electrical, transmission, and distribution.

>> 7 Top Picks for the Post-Pandemic Economy << 

Conclusion

The recent news about the removal from S&P SmallCap 600 could be the reason behind its exceptional loss on Tuesday. It can continue to further decline on Wednesday as well.

LEAVE A REPLY

Please enter your comment!
Please enter your name here