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Mistras Group Beats Q1 Expectations, Shares Surge

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Shares of Mistras Group Inc (NYSE: MG) jumped around 16 percent in after-hours trading on Wednesday after the company reported better-than-expected results for its fiscal first quarter. The company also announced a $50 million buyback program.

The Princeton Junction, New Jersey-based company posted quarterly net income of $6.9 million, or $0.23 per share, up from $1.7 million, or $0.06 per share, in the year-ago period.

Its revenue climbed 8 percent to $179.9 million. However, analysts were expecting earnings of $0.09 per share on revenue of $163.47 million.

Services segment revenue rose 13 percent in the quarter, while International segment revenue slipped 8 percent. Products and Systems segment revenue jumped 32 percent.

Adjusted EBITDA climbed to $22.3 million from $13.4 million. Its gross profit margins expanded to 28.5 percent from 25.2 percent.

Cash flow from operations climbed to $17.7 million in the first quarter, from $9.2 million in the year-ago quarter.

Sotirios Vahaviolos, Chairman and Chief Executive Officer said, "We took a number of decisive actions in our previous fiscal year that were made to improve our results despite oil and gas market conditions that remain challenging and unsettled. We are extremely pleased that we can already see positive impacts from these actions, across our entire business globally. I am proud of my team's ability to improve our adjusted EBITDA margins by over 400 basis points, while at the same time taking care to service our customers in the world-class fashion that they deserve. "

For fiscal 2016, the company reaffirmed its revenue forecast of $710 million to $725 million. The company projects profit levels to be at the higher end of its outlook range.

Mistras Group shares jumped 15.95 percent to $16.50 in the after-hours trading session.

 

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