Yahoo Finance Eagle Materials (EXP) to Report Q4 Earnings: What's in Store?
Eagle Materials Inc. EXP is scheduled to report fourth-quarter fiscal 2024 (ended Mar 31, 2024) results on May 21, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.5%, and revenues surpassed the same by 4%. On a year-over-year basis, earnings of heavy construction materials and light building materials producers increased 16% and revenues rose 9%.
Eagle Materials’ earnings topped the consensus mark in all the last four quarters, the average surprise being 6.5%.
Eagle Materials Inc Price and EPS Surprise
Eagle Materials Inc price-eps-surprise | Eagle Materials Inc Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has decreased to $2.72 per share from $2.77 over the past 30 days. The estimated figure indicates a decrease of 2.5% from the year-ago level.
The consensus mark for revenues is pinned at $478.6 million, implying 1.8% year-over-year growth.
Factors to Note
Anticipated improvements in demand trends and favorable pricing momentum are expected to have bolstered Eagle Materials’ performance in the fiscal fourth quarter. With housing supply constraints and robust homebuyer demand persisting alongside escalating infrastructure awards and substantial investments in domestic manufacturing facilities, EXP is likely to experience heightened volumes in wallboard and cement segments.
Moreover, the surge in non-residential construction activities coupled with additional federal funding from the recently enacted Infrastructure Investment and Jobs Act is likely to provide further tailwinds for EXP's fourth-quarter fiscal 2024 performance.
Heavy Materials’ demand and cement pricing remain solid, which are likely to have aided the segment’s results. For the Heavy Materials segment (which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenues), the consensus mark for revenues (which accounted for 59.4% of total revenues in the fiscal third quarter) is currently pegged at $240.7 million, depicting an increase from $225.9 million registered a year ago.
Within the Heavy Materials umbrella, the consensus mark for Cement revenues is currently pegged at $183.3 million, indicating an increase from $172.8 million reported a year ago. The consensus estimate for Concrete and Aggregates’ revenues is presently pegged at $57.2 million, indicating an increase from $53.1 million recorded a year ago.
Meanwhile, the backlog of housing construction is likely to have supported resilient wallboard shipments and orders within the Light Materials segment. However, lower Paperboard and Wallboard pricing is likely to weigh on the results.
The consensus mark for the Light Materials sector’s (which includes Gypsum Wallboard and Paperboard revenues) revenues (which accounted for 40.6% of total revenues in the fiscal third quarter) is currently pegged at $234.4 million, down from $244.2 million a year ago.
Within the Light Materials sector, the consensus mark for Gypsum Wallboard revenues is currently pegged at $213.3 million, down from $219.5 million reported a year ago. The consensus mark for Gypsum Paperboard revenues is presently pegged at $23.7 million, down from $24.7 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Eagle Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
EXP has an Earnings ESP of -2.50% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Peer Releases
Martin Marietta Materials, Inc. MLM reported mixed results for first-quarter 2024, with earnings surpassing the Zacks Consensus Estimate but revenues missed the same. Both the top and bottom lines decreased on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers, and energy projects to offset softer residential and warehouse construction demand, as well as anticipated moderation in light non-residential activity. Impressively, MLM increased full-year adjusted EBITDA guidance to $2.37 billion at the midpoint.
Vulcan Materials Company VMC reported better-than-expected results for the first quarter of 2024, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate. On a year-over-year basis, both metrics decreased year over year due to lower Aggregate shipments.
VMC anticipates adjusted EBITDA in the range of $2.15-$2.30 billion (up from $2.01 billion in 2023) and net earnings of $1.07-$1.19 billion versus $933 million in the prior year.
Summit Materials, Inc. SUM reported first-quarter 2024 loss per share of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 23 cents. The company reported revenues of $773.23 million for the quarter, missing the consensus mark by 5.3%.
SUM expects 2024 adjusted EBITDA between $970 million and $1,010 million (versus $578 million reported in 2023), with capital expenditures estimated to decline in the range of $430 million-$470 million.
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Vulcan Materials Company (VMC) : Free Stock Analysis Report
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Eagle Materials Inc (EXP) : Free Stock Analysis Report
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