Minerals Technologies (NYSE:MTX) Posts Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Minerals Technologies (NYSE:MTX) posted its quarterly earnings data on Thursday. The basic materials company reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.64 by ($0.04), FiscalAI reports. Minerals Technologies had a net margin of 7.60% and a return on equity of 10.40%. Minerals Technologies’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.55 EPS.

Minerals Technologies Trading Down 1.6%

Shares of MTX traded down $1.19 during mid-day trading on Thursday, reaching $72.55. The company’s stock had a trading volume of 312,115 shares, compared to its average volume of 175,666. Minerals Technologies has a 52 week low of $53.94 and a 52 week high of $84.34. The stock has a market cap of $2.25 billion, a PE ratio of 14.03 and a beta of 1.15. The company’s fifty day moving average price is $75.63 and its two-hundred day moving average price is $72.73. The company has a current ratio of 2.13, a quick ratio of 1.47 and a debt-to-equity ratio of 0.54.

Minerals Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.48 annualized dividend and a dividend yield of 0.7%. Minerals Technologies’s dividend payout ratio (DPR) is 9.28%.

Key Headlines Impacting Minerals Technologies

Here are the key news stories impacting Minerals Technologies this week:

• Positive Sentiment: Underlying adjusted EPS rose 3% year over year to $1.60, while revenue increased 4% to $548.4 million. First-half sales were up 7%, keeping the company on track for mid-single-digit full-year growth. Minerals Technologies Second-Quarter Results
• Positive Sentiment: The Engineered Solutions segment was a strong point, with sales increasing 9% and operating income rising 12% excluding special items. Its 17.8% operating margin was a record, supported by stronger steel, foundry, infrastructure and building-materials demand. Minerals Technologies Q2 Sales
• Positive Sentiment: Cash generation improved meaningfully, with first-half free cash flow of $44.8 million versus $11.1 million a year earlier. Management also reported a solid adjusted net leverage ratio of 1.6x.
• Neutral Sentiment: Management said pricing actions should help offset inflationary costs in the second half. Investors will look for evidence of margin recovery during the earnings call on July 31 and at the company’s September 22 Investor Day. Minerals Technologies Financial Results
• Neutral Sentiment: Minerals Technologies published new environmental targets through 2035 and reported progress on prior sustainability goals. While potentially supportive of long-term positioning, this is unlikely to materially affect near-term earnings.
• Negative Sentiment: Adjusted EPS of $1.60 missed the $1.64 consensus estimate, while reported results showed a $5.90 loss per share. The miss likely contributed to the stock’s decline as investors focused on weaker-than-expected profitability.
• Negative Sentiment: MTX recorded a $290 million charge to increase reserves for talc-related claims, its subsidiary’s Chapter 11 proceedings and related litigation. This drove a reported operating loss of $220 million and highlights continuing legal and financial uncertainty.
• Negative Sentiment: The Consumer & Specialties segment remained weak: sales fell 1% and operating income declined 21% excluding special items, as inflation, energy, transportation and raw-material costs pressured margins.

Insider Buying and Selling

In related news, VP Timothy Jordan sold 6,000 shares of Minerals Technologies stock in a transaction on Monday, May 11th. The shares were sold at an average price of $80.27, for a total value of $481,620.00. Following the transaction, the vice president owned 1,279 shares in the company, valued at $102,665.33. This trade represents a 82.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Minerals Technologies

Large investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its stake in shares of Minerals Technologies by 626.8% during the second quarter. EverSource Wealth Advisors LLC now owns 596 shares of the basic materials company’s stock valued at $33,000 after purchasing an additional 514 shares during the period. Danske Bank A S purchased a new stake in Minerals Technologies during the 3rd quarter valued at $56,000. Strs Ohio purchased a new stake in Minerals Technologies during the 1st quarter valued at $70,000. Smartleaf Asset Management LLC grew its holdings in Minerals Technologies by 136.2% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,278 shares of the basic materials company’s stock worth $71,000 after acquiring an additional 737 shares during the last quarter. Finally, iSAM Funds UK Ltd bought a new stake in Minerals Technologies in the 3rd quarter worth $124,000. 97.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on MTX shares. Truist Financial lifted their price target on Minerals Technologies from $89.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, May 4th. Wall Street Zen upgraded shares of Minerals Technologies from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 4th. Seaport Research Partners reaffirmed a “buy” rating on shares of Minerals Technologies in a report on Monday, May 4th. Finally, Weiss Ratings upgraded shares of Minerals Technologies from a “sell (d+)” rating to a “hold (c+)” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $90.00.

About Minerals Technologies

Minerals Technologies Inc develops, produces and processes a broad range of mineral-based products and solutions that serve a variety of industrial applications. Its offerings include bentonite, perlite, precipitated calcium carbonate (PCC), mineral sands, foundry additives, performance minerals and specialty chemicals designed to enhance performance in markets such as paper, steel, construction, oil and gas, environmental remediation and consumer products.

The company operates through several business segments, including Specialty Minerals, Refractory Minerals, Performance Materials and Recycled Materials.