Johnson Matthey (LON:JMAT) Posts Quarterly Earnings Results

Johnson Matthey (LON:JMAT) released its earnings results on Thursday. The company reported GBX 128.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Johnson Matthey had a negative net margin of 1.13% and a negative return on equity of 5.87%. The firm had revenue of GBX 1,257.30 billion during the quarter.

Here are the key takeaways from Johnson Matthey’s conference call:

• Johnson Matthey reported 6% underlying growth in line with upgraded guidance, with underlying operating profit up 14% and free cash flow rising to GBP 168 million, more than 160% higher year on year.
• Clean Air margin improved sharply to 14.5%, and management said it is on track to reach 16%-18% margins by 2027/2028 through cost savings, footprint consolidation, and better commercial execution.
• Hydrogen Technologies reached run-rate breakeven in the fourth quarter, but the company also took impairments after recalibrating growth expectations amid slower fuel cell and electrolyser markets.
• PGM Services was hit by a GBP 48 million operational metal loss at the U.S. refinery, and management said higher loss provisions and refinery transition costs will continue to weigh on earnings near term.
• The announced Cormetech acquisition expands JM into stationary emission control for data centers and distributed power, is expected to be earnings accretive from year one, and comes with a visible pipeline and around GBP 20 million of expected run-rate synergies by 2030.

Johnson Matthey Price Performance

LON JMAT opened at GBX 2,150 on Thursday. The company has a quick ratio of 0.76, a current ratio of 1.65 and a debt-to-equity ratio of 71.01. The company has a market cap of £3.60 billion, a PE ratio of -32.63, a price-to-earnings-growth ratio of 49,242.50 and a beta of 0.91. Johnson Matthey has a 52 week low of GBX 1,660 and a 52 week high of GBX 2,434. The firm’s 50-day simple moving average is GBX 2,020.86 and its two-hundred day simple moving average is GBX 2,107.21.

Insider Buying and Selling at Johnson Matthey

In related news, insider Liam Condon purchased 14 shares of the firm’s stock in a transaction dated Wednesday, March 11th. The shares were purchased at an average cost of GBX 1,941 per share, for a total transaction of £271.74. Also, insider Alastair Judge purchased 14 shares of Johnson Matthey stock in a transaction dated Wednesday, April 15th. The shares were purchased at an average price of GBX 2,022 per share, with a total value of £283.08. In the last 90 days, insiders have acquired 72 shares of company stock worth $146,198. Company insiders own 0.51% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on JMAT. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Johnson Matthey from GBX 1,922 to GBX 2,120 and gave the company a “buy” rating in a research report on Tuesday, April 7th. UBS Group reissued a “neutral” rating and issued a GBX 2,200 price target on shares of Johnson Matthey in a research report on Friday, May 22nd. Finally, Berenberg Bank reduced their price objective on shares of Johnson Matthey from GBX 2,250 to GBX 2,100 and set a “buy” rating for the company in a research report on Monday, March 23rd. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of GBX 2,218.33.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.