Minerals Technologies Inc. (MTI) reported a challenging start to the year, with first-quarter sales expected to reach approximately $498.68 million. This is attributed to prolonged weaker demand conditions that began in January and persisted longer than anticipated, affecting production volumes as customers adjusted their inventory levels amidst economic uncertainties.
The company took several steps to manage the increased operating costs resulting from reduced volumes, but has revised their Q1 operating income forecast to $63 million, excluding specific charges related to BMI OldCo and restructuring, down from an initial projection of $70 million.
However, March saw a significant improvement in sales, with the run rate surpassing initial guidance, a trend that continues into April. Looking forward, MTI anticipates a considerably stronger performance in the second quarter.
In an effort to further streamline operations, MTI has launched a cost-savings initiative aimed at reducing annual expenses by approximately $10 million. This program involves workforce reductions and has incurred a $5.5 million charge for severance and associated costs. The company expects to achieve full run rate savings from this initiative by early 2026, enhancing its operational efficiency in the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Minerals Technologies Inc (MTX, Financial) is $98.75 with a high estimate of $115.00 and a low estimate of $92.00. The average target implies an upside of 74.13% from the current price of $56.71. More detailed estimate data can be found on the Minerals Technologies Inc (MTX) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Minerals Technologies Inc's (MTX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Minerals Technologies Inc (MTX, Financial) in one year is $72.94, suggesting a upside of 28.62% from the current price of $56.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Minerals Technologies Inc (MTX) Summary page.
