Myers Industries (NYSE:MYE) Announces Quarterly Earnings Results

Myers Industries (NYSE:MYE) released its quarterly earnings results on Thursday. The industrial products company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.13), FiscalAI reports. The company had revenue of $171.34 million for the quarter, compared to analyst estimates of $163.80 million. Myers Industries had a return on equity of 19.86% and a net margin of 4.86%. During the same period last year, the firm posted $0.19 earnings per share.

Here are the key takeaways from Myers Industries’ conference call:

• Third-quarter revenue increased 8.1% year over year, led by 38% growth in infrastructure and 12% growth in food and beverage; excluding exited low-margin products, revenue growth was 10.4%.
• Adjusted gross margin fell 360 basis points to 28.2% because of a 76% spike in resin costs, unfavorable mix, and unplanned maintenance. Management expects pricing actions and stabilized resin costs to drive significant sequential margin improvement in the fourth quarter.
• The Myers Tire Supply divestiture reduced net debt by $28.5 million, lowering net leverage to 1.86 times, while year-to-date free cash flow rose 29% to $61.9 million.
• Management raised its food and beverage outlook to strong growth and expects infrastructure to maintain strong growth, while Signature is projected to deliver mid- to high-teens annual revenue growth through 2029 through composite-mat conversion, new products, and capacity expansion.
• The company lowered its vehicle-market outlook from stable to down, citing declining RV demand, higher interest rates and fuel prices, weak consumer confidence, and delayed automotive OEM launches; military demand is also expected to face near-term timing-related headwinds.

Myers Industries Price Performance

Shares of MYE traded down $1.27 during mid-day trading on Friday, reaching $29.12. The company had a trading volume of 264,265 shares, compared to its average volume of 330,120. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of 30.12 and a beta of 0.83. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.21 and a current ratio of 1.61. The company’s 50 day simple moving average is $31.54 and its 200 day simple moving average is $26.50. Myers Industries has a 1-year low of $16.46 and a 1-year high of $37.45.

Myers Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 6th. Stockholders of record on Friday, December 4th will be paid a $0.1350 dividend. The ex-dividend date is Friday, December 4th. This represents a $0.54 annualized dividend and a dividend yield of 1.9%. Myers Industries’s dividend payout ratio (DPR) is presently 55.67%.

More Myers Industries News

Here are the key news stories impacting Myers Industries this week:

• Positive Sentiment: Management outlined two planned 30% capacity expansions for the Signature business, expected in 2027 and 2029. The projects are intended to generate approximately $60 million in incremental revenue through 2029. Signature capacity expansion article
• Positive Sentiment: Third-quarter revenue rose 8.1% year over year to $171.3 million, exceeding analyst expectations of $163.8 million. Infrastructure revenue increased 38% and Food & Beverage revenue grew 12%. Myers said pricing actions and stabilizing resin costs should support significant sequential margin improvement in the fourth quarter. Myers third-quarter revenue report
• Neutral Sentiment: Management reported $17.4 million of operating cash flow, $5.9 million of capital expenditures and total liquidity of $254.7 million, including $53.5 million in cash, providing financial flexibility for planned investments.
• Negative Sentiment: Adjusted earnings per share were $0.32, missing the $0.45 consensus estimate. On a GAAP basis, Myers posted a $0.9 million net loss, or $0.02 per share, versus $7.1 million of net income, or $0.19 per share, a year earlier. Myers third-quarter earnings article
• Negative Sentiment: Gross profit declined 5.0% to $46.8 million, while gross margin contracted to 27.3% from 31.1%. Higher resin costs, unfavorable product mix and unplanned maintenance expenses weighed on profitability, making the near-term recovery dependent on successful pricing and cost stabilization.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Wall Street Zen lowered Myers Industries from a “strong-buy” rating to a “buy” rating in a report on Tuesday, October 20th. Weiss Ratings upgraded shares of Myers Industries from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Myers Industries currently has a consensus rating of “Moderate Buy” and an average price target of $37.00.

Myers Industries Company Profile

Myers Industries, Inc is a manufacturer and distributor of products serving industrial, agricultural, automotive, commercial and consumer markets. Founded in 1933 and headquartered in Akron, Ohio, the company operates primarily in North America.

Through its material-handling businesses, Myers Industries produces reusable plastic containers, totes, pallets, drums, tanks and other molded products. These products are used to store, transport and protect materials across industries such as manufacturing, food processing, agriculture, healthcare and logistics.

The company also distributes tire-service supplies, equipment and related products to tire dealers, retreaders, commercial fleets and automotive service providers.