Mistras Group Waits Patiently for Energy to Recover
In the past, companies that had equipment and other working assets in far-flung places across remote areas had little choice but to have workers visit them on a regular basis to ensure they were functioning properly. Now, Mistras Group (NYSE: MG) offers the ability to provide both remote monitoring of equipment and asset-protection services. Those services have value to clients in a large number of businesses. But one clear application involves oil and gas assets, and Mistras has struggled to boost its business with companies in that industry, which are dealing with low energy prices and their impact on capital and operational spending.
Coming into Monday's third-quarter financial report, Mistras investors were ready for another round of reduced earnings and revenue due to tough conditions in the oil patch. The company's results were mixed, with solid sales gains despite summer hurricanes affecting Texas, Florida, the Gulf of Mexico, and the Caribbean. Yet profits remained under pressure, and Mistras knows it has more work to do in order to produce long-term success. Let's look more closely at how Mistras Group did, and what's ahead for the company.
Image source: Mistras Group.
Source: Fool.com