LEUVEN - Materialise NV (NASDAQ:MTLS) reported first-quarter earnings that surpassed analyst expectations, despite a slight decline in revenue compared to the same quarter last year.
The company's adjusted earnings per share (EPS) for the first quarter ended March 31, 2024, came in at $0.06, exceeding the analyst estimate of $0.03. However, revenue for the quarter was $63.64 million, falling short of the consensus estimate of $64.4 million and marking a 3.4% decrease from the $65.89 million reported in the first quarter of 2023.
The company's CEO, Brigitte de Vet-Veithen, acknowledged the revenue dip as anticipated, attributing it to the exceptionally strong growth of 24% in the same period the previous year.
Despite less favorable market conditions affecting the Manufacturing and Software segments, Materialise Medical segment revenue grew by 8%. She noted that while investments in sustainable growth and the shift to a recurring revenue model impacted operational profitability, the company still achieved a positive net result and an improved net cash position.
Materialise's stock saw a modest increase of 1% following the earnings release, indicating a positive investor response to the profit beat. The company's net profit for the quarter was 3,585 kEUR, a slight decrease from the 3,715 kEUR reported in the first quarter of 2023. The gross profit margin improved, reaching 56.5% compared to 55.9% in the previous year.
Looking ahead, Materialise maintains its full fiscal year 2024 revenue guidance of 265,000 to 275,000 kEUR and an adjusted EBIT guidance of 11,000 kEUR to 14,000 kEUR. This guidance reflects the company's confidence in its business fundamentals and growth objectives.
Materialise's financial position remains solid, with a net cash increase of 6,038 kEUR to 69,213 kEUR. The company's CEO expressed optimism about the strength of their three business segments and the company's positioning to achieve its growth targets for the year.
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