We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Martin Marietta (MLM) Q4 Earnings Top Estimates, Shares Rise
Read MoreHide Full Article
Martin Marietta Materials, Inc. (MLM - Free Report) reported fourth-quarter 2020 results, wherein earnings and revenues (products and services) topped the respective Zacks Consensus Estimate. Higher shipments, improved pricing strategy and prudent cost management helped the company report solid results.
The stock gained 1.4% on Feb 9, following the earnings release.
Ward Nye, Chairman and CEO of Martin Marietta said, “We anticipate single-family housing growth, expanded infrastructure investment and notable heavy industrial projects of scale will support the company’s near-term shipment levels. We expect these demand drivers, combined with the ancillary construction necessary for housing community buildouts and the potential increased infrastructure investment from a comprehensive federal surface transportation package, should provide for multi-year growth in product demand.”
Inside the Headlines
Martin Marietta reported adjusted earnings per share of $2.93, which surpassed the Zacks Consensus Estimate of $2.28 by 28.5%. The metric also increased 40.2% from the year-ago level of $2.09 per share. The uptrend was mainly attributed to shipment growth, pricing gains and disciplined cost management across the business.
Total quarterly revenues (including Product and services, and Freight revenues) came in at $1.18 billion, up 7.2% from the year-ago figure of $1.1 billion. Products and services revenues of $1.11 billion, accounting for 94.2% of total revenues, grew 8.4% year over year and topped the consensus mark by 5.8%.
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
The Building Materials segment (including aggregates, cement, ready-mixed concrete, asphalt, paving product lines and Freight) revenues of $1.12 billion increased 7% year over year. Within the segment, product and services revenues amounted to $1.05 billion, up 8.3% from the year-ago level. However, freight revenues of $63.1 million were down from $70.6 million in the year-ago period. The segment benefited from strong residential construction activity and milder weather conditions that led to the extension of the construction season. Consistent with management’s expectations, pricing remained resilient with growth in all product lines.
Again, in product and services, Aggregates’ revenues of $677.2 million jumped 6.6% from the year-ago quarter. Also, Cement revenues grew 11.7% year over year to $120.8 million. Ready Mixed Concrete’s revenues were up 17.3% year over year to $262.7 million. Revenues in Asphalt and paving product lines also increased 12.3% from the year-ago quarter to $76.8 million.
Aggregates shipments grew 3% year over year. Aggregates pricing also improved 3.5% from the prior-year quarter.
Owing to higher shipments, third-quarter aggregates gross margin grew 370 basis points (bps) to 30.7% driven by higher shipments, strong price gains and lower production costs, including diesel fuel and contract services.
Cement shipments increased 11.7% year over year in the quarter, marking a record fourth-quarter level. Pricing improved 0.5% from the prior-year quarter. Ready mixed concrete shipments grew 17% while pricing growth was 0.3%.
Within the Building Materials business segment, the company changed the reportable segments to the East Group — previously reported in the Mid-America and Southeast — and West Group, effective Jul 1, 2020.
Geographically, East Group operations’ shipments improved 3.1% from the prior-year period due to solid demand in North Carolina, Georgia, Florida and Indiana that more than offset reduced midwestern wind energy construction activity. Pricing grew 6% from the year-ago quarter, with improvements in both East and Central divisions.
West Groups’ aggregate shipments gained 2.8% from a year ago. This was due to housing activity and large heavy industrial projects, partly offset by reduced energy-sector demand. Pricing dropped 1.3% year over year.
The Magnesia Specialties segment — including magnesium oxide, magnesium hydroxide and dolomite lime products — reported total revenues of $62.4 million, reflecting 11.2% growth from the year-ago period due to higher demand for chemicals and lime products. Product and services revenues of $56.8 million were up 11.4% year over year. Freight revenues of $5.6 million were also up from $5.1 million in the year-ago period.
Operating Highlights
Consolidated gross margin came in at 27.6%, which improved 410 bps. Also, adjusted EBITDA of $335.1 million increased 20.2% year over year.
Liquidity and Cash Flow
As of Dec 31, 2020, Martin Marietta had cash and cash equivalents of $207.3 million compared with $21 million at 2019-end. Long-term debt (excluding current maturities) was $2.63 billion compared with $2.43 at 2019-end. Net cash provided by operations was $1.05 billion for 2020, up from $966.1 million in 2019.
It had $1.1 billion of unused borrowing capacity on the existing credit facility as of Dec 31, 2020.
Full-Year Highlights
Earnings came in at $11.54 per share, up from $9.74 in 2019. Total revenues were $4.73 billion for the year, slightly down from $4.74 billion in 2019. Product and services revenues increased slightly to $4,432.1 million from $4,422.3 million in 2019. Adjusted EBITDA was $1,392.8 million, up from $1,254.5 million in 2019.
Notably, 2020 marked the company’s ninth consecutive year of growth of products and services revenues, gross profit, adjusted EBITDA, along with earnings per share.
Guidance
It expects products and services revenues in the range of $4,510-$4,700 million, gross profit in the $1,290-$1,380 million band, selling, general and administrative expenses (SG&A) within $320-330 million, and adjusted EBITDA between $1,350 million and $1,450 million. Net earnings are anticipated in the $665-$750 million range.
Aggregate shipment growth is expected in the range of 1-4%. Pricing is expected to grow between 3% and 5%.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Martin Marietta (MLM) Q4 Earnings Top Estimates, Shares Rise
Martin Marietta Materials, Inc. (MLM - Free Report) reported fourth-quarter 2020 results, wherein earnings and revenues (products and services) topped the respective Zacks Consensus Estimate. Higher shipments, improved pricing strategy and prudent cost management helped the company report solid results.
The stock gained 1.4% on Feb 9, following the earnings release.
Ward Nye, Chairman and CEO of Martin Marietta said, “We anticipate single-family housing growth, expanded infrastructure investment and notable heavy industrial projects of scale will support the company’s near-term shipment levels. We expect these demand drivers, combined with the ancillary construction necessary for housing community buildouts and the potential increased infrastructure investment from a comprehensive federal surface transportation package, should provide for multi-year growth in product demand.”
Inside the Headlines
Martin Marietta reported adjusted earnings per share of $2.93, which surpassed the Zacks Consensus Estimate of $2.28 by 28.5%. The metric also increased 40.2% from the year-ago level of $2.09 per share. The uptrend was mainly attributed to shipment growth, pricing gains and disciplined cost management across the business.
Total quarterly revenues (including Product and services, and Freight revenues) came in at $1.18 billion, up 7.2% from the year-ago figure of $1.1 billion. Products and services revenues of $1.11 billion, accounting for 94.2% of total revenues, grew 8.4% year over year and topped the consensus mark by 5.8%.
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
Martin Marietta Materials, Inc. price-consensus-eps-surprise-chart | Martin Marietta Materials, Inc. Quote
Segment Discussion
The Building Materials segment (including aggregates, cement, ready-mixed concrete, asphalt, paving product lines and Freight) revenues of $1.12 billion increased 7% year over year. Within the segment, product and services revenues amounted to $1.05 billion, up 8.3% from the year-ago level. However, freight revenues of $63.1 million were down from $70.6 million in the year-ago period. The segment benefited from strong residential construction activity and milder weather conditions that led to the extension of the construction season. Consistent with management’s expectations, pricing remained resilient with growth in all product lines.
Again, in product and services, Aggregates’ revenues of $677.2 million jumped 6.6% from the year-ago quarter. Also, Cement revenues grew 11.7% year over year to $120.8 million. Ready Mixed Concrete’s revenues were up 17.3% year over year to $262.7 million. Revenues in Asphalt and paving product lines also increased 12.3% from the year-ago quarter to $76.8 million.
Aggregates shipments grew 3% year over year. Aggregates pricing also improved 3.5% from the prior-year quarter.
Owing to higher shipments, third-quarter aggregates gross margin grew 370 basis points (bps) to 30.7% driven by higher shipments, strong price gains and lower production costs, including diesel fuel and contract services.
Cement shipments increased 11.7% year over year in the quarter, marking a record fourth-quarter level. Pricing improved 0.5% from the prior-year quarter. Ready mixed concrete shipments grew 17% while pricing growth was 0.3%.
Within the Building Materials business segment, the company changed the reportable segments to the East Group — previously reported in the Mid-America and Southeast — and West Group, effective Jul 1, 2020.
Geographically, East Group operations’ shipments improved 3.1% from the prior-year period due to solid demand in North Carolina, Georgia, Florida and Indiana that more than offset reduced midwestern wind energy construction activity. Pricing grew 6% from the year-ago quarter, with improvements in both East and Central divisions.
West Groups’ aggregate shipments gained 2.8% from a year ago. This was due to housing activity and large heavy industrial projects, partly offset by reduced energy-sector demand. Pricing dropped 1.3% year over year.
The Magnesia Specialties segment — including magnesium oxide, magnesium hydroxide and dolomite lime products — reported total revenues of $62.4 million, reflecting 11.2% growth from the year-ago period due to higher demand for chemicals and lime products. Product and services revenues of $56.8 million were up 11.4% year over year. Freight revenues of $5.6 million were also up from $5.1 million in the year-ago period.
Operating Highlights
Consolidated gross margin came in at 27.6%, which improved 410 bps. Also, adjusted EBITDA of $335.1 million increased 20.2% year over year.
Liquidity and Cash Flow
As of Dec 31, 2020, Martin Marietta had cash and cash equivalents of $207.3 million compared with $21 million at 2019-end. Long-term debt (excluding current maturities) was $2.63 billion compared with $2.43 at 2019-end. Net cash provided by operations was $1.05 billion for 2020, up from $966.1 million in 2019.
It had $1.1 billion of unused borrowing capacity on the existing credit facility as of Dec 31, 2020.
Full-Year Highlights
Earnings came in at $11.54 per share, up from $9.74 in 2019. Total revenues were $4.73 billion for the year, slightly down from $4.74 billion in 2019. Product and services revenues increased slightly to $4,432.1 million from $4,422.3 million in 2019. Adjusted EBITDA was $1,392.8 million, up from $1,254.5 million in 2019.
Notably, 2020 marked the company’s ninth consecutive year of growth of products and services revenues, gross profit, adjusted EBITDA, along with earnings per share.
Guidance
It expects products and services revenues in the range of $4,510-$4,700 million, gross profit in the $1,290-$1,380 million band, selling, general and administrative expenses (SG&A) within $320-330 million, and adjusted EBITDA between $1,350 million and $1,450 million. Net earnings are anticipated in the $665-$750 million range.
Aggregate shipment growth is expected in the range of 1-4%. Pricing is expected to grow between 3% and 5%.
Zacks Rank
Martin Marietta — which shares space with Vulcan Materials Company (VMC - Free Report) , Summit Materials, Inc. (SUM - Free Report) and Eagle Materials Inc. (EXP - Free Report) in the Zacks Building Products - Concrete and Aggregates industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>