Materion Q3 sales rise 28% but miss estimates

Overview

• US advanced materials supplier's Q3 net sales rose 28% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company raised full-year adjusted EPS outlook, citing record backlog and strong demand

Outlook

• Materion raises full-year adjusted EPS guidance to $7.10-$7.40

• Company expects higher Q4 sales driven by record backlog and strong demand

• Materion cites record backlog and order momentum supporting 2026 outlook

Result Drivers

• SEMICONDUCTOR SALES - Co said record quarterly semiconductor sales and growth in aerospace & defense and telecom & data center markets drove value-added sales

• VOLUME AND PRICE/MIX - Higher sales volumes and improved price/mix contributed to margin expansion, per co

• ORDER BACKLOG - Co said incoming orders and backlog reached all-time highs, supporting outlook

Company press release: ID:nBw7LQLjxa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• Wall Street's median 12-month price target for Materion Corporation is $306.00, about 34.5% above its November 3 closing price of $227.43

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• Nov 3 - EnPro beats Q3 sales, profit estimates on semiconductor demand, outlook raised

• Nov 2 - Israel's Tower Semi Q3 revenue growth of 33% tops estimates, sees faster Q4 growth

• Nov 3 - Navitas Semiconductor Q3 revenue beats estimates on rising demand from AI data centers and grid infrastructure

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)