Johnson Matthey (LON:JMAT) Announces Earnings Results

Johnson Matthey (LON:JMAT) posted its quarterly earnings results on Thursday. The company reported GBX 128.50 earnings per share for the quarter, Digital Look Earnings reports. Johnson Matthey had a negative net margin of 0.76% and a negative return on equity of 4.66%. The company had revenue of GBX 1,257.30 billion for 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 Stock Performance

Shares of JMAT stock opened at GBX 2,120 on Friday. The company has a market cap of £3.55 billion, a price-to-earnings ratio of -32.17, 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 company has a quick ratio of 0.76, a current ratio of 1.56 and a debt-to-equity ratio of 69.69. The firm has a 50 day moving average of GBX 2,030.28 and a 200-day moving average of GBX 2,107.61.

Analysts Set New Price Targets

JMAT has been the topic of a number of research analyst reports. UBS Group restated a “neutral” rating and issued a GBX 2,200 price target on shares of Johnson Matthey in a research note on Friday, May 22nd. Jefferies Financial Group restated a “restricted” rating on shares of Johnson Matthey in a report on Friday. Berenberg Bank lowered their price target on shares of Johnson Matthey from GBX 2,250 to GBX 2,100 and set a “buy” rating for the company in a report on Monday, March 23rd. Finally, Deutsche Bank Aktiengesellschaft raised their price target on shares of Johnson Matthey from GBX 2,120 to GBX 2,400 and gave the stock a “buy” rating in a report on Friday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Johnson Matthey currently has an average rating of “Moderate Buy” and an average target price of GBX 2,265.

Insider Activity at Johnson Matthey

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

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.