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What to Expect From Martin Marietta (MLM) This Earnings Season
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Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 0.5% but revenues (products and services) beat the same by 4.2%. On a year-over-year basis, earnings of this aggregates producer decreased 9.8%, and products and services revenues rose 17.9%. Total quarterly revenues (including Product and Services and Freight revenues) came in at $1,557.3 million, up 17.9% from the year-ago figure.
Martin Marietta’s earnings topped the consensus mark in two of the last four quarters but missed on two occasions, with the average surprise being 33.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings has increased to $2.97 from $2.91 per share over the past 30 days. The estimated figure suggests a 1.4% increase from $2.93 per share reported in the year-ago period. The consensus mark for revenues is pegged at $1.36 billion, which calls for 22.1% growth from the prior-year reported figure.
Martin Marietta Materials, Inc. Price and EPS Surprise
Mild winter and drier weather are likely to have remained conducive to aggregates/cement producers like Martin Marietta during the fourth quarter. The company’s quarterly revenues are expected to have witnessed year-over-year growth in the fourth quarter, given solid product demand and pricing gains across all product lines. Also, the acquisition of Lehigh Hanson, Inc.’s West Region business should have aided its top line. Improved visibility in nonresidential construction and strong residential construction are likely to have been positives.
Infrastructure construction — particularly for aggregates intensive highways, roads and streets — might have contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Overall, the strengthening of the housing market and improvement of the non-residential market are expected to have driven demand. Also, resilient pricing — given growth in all product lines — may have been an added positive.
MLM’s business and earnings have been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida as well as Iowa. Higher spending from a number of states that it serves is likely to have aided revenues.
Overall, despite mixed volumes, pricing (strongest in aggregates) is likely to have supported margins. Higher pricing in upstream aggregates and cement businesses as well as disciplined cost management throughout the business are likely to aid quarterly results.
Meanwhile, inflation from hydrocarbon, rising liquid asphalt, insurance and labor may have been a negative. Higher operating costs and acquisition-related costs may have also been risks.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services) — which comprise 95% of total revenues — is pegged at $1,279 million, implying 21.3% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $57 million. This suggests no year-over-year change.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Martin Marietta 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.
Earnings ESP: Martin Marietta has an Earnings ESP of +1.40%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #1.
Shares of Boise Cascade have gained 50.2% over the past year. BCC’s earnings topped the consensus mark in all the last four quarters, with the average being 45.5%.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #1.
Shares of Louisiana-Pacific have gained 61.6% over the past year. LPX’s earnings topped the consensus mark in all the last four quarters, with the average being 10.5%.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +2.64% and a Zacks Rank #3.
Shares of WSO have gained 5.2% over the past year. WSO’s earnings topped the consensus mark in the trailing four quarters, with the average being 21.3%.
Image: Bigstock
What to Expect From Martin Marietta (MLM) This Earnings Season
Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 0.5% but revenues (products and services) beat the same by 4.2%. On a year-over-year basis, earnings of this aggregates producer decreased 9.8%, and products and services revenues rose 17.9%. Total quarterly revenues (including Product and Services and Freight revenues) came in at $1,557.3 million, up 17.9% from the year-ago figure.
Martin Marietta’s earnings topped the consensus mark in two of the last four quarters but missed on two occasions, with the average surprise being 33.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings has increased to $2.97 from $2.91 per share over the past 30 days. The estimated figure suggests a 1.4% increase from $2.93 per share reported in the year-ago period. The consensus mark for revenues is pegged at $1.36 billion, which calls for 22.1% growth from the prior-year reported figure.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta Materials, Inc. price-eps-surprise | Martin Marietta Materials, Inc. Quote
Factors to Note
Mild winter and drier weather are likely to have remained conducive to aggregates/cement producers like Martin Marietta during the fourth quarter. The company’s quarterly revenues are expected to have witnessed year-over-year growth in the fourth quarter, given solid product demand and pricing gains across all product lines. Also, the acquisition of Lehigh Hanson, Inc.’s West Region business should have aided its top line. Improved visibility in nonresidential construction and strong residential construction are likely to have been positives.
Infrastructure construction — particularly for aggregates intensive highways, roads and streets — might have contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Overall, the strengthening of the housing market and improvement of the non-residential market are expected to have driven demand. Also, resilient pricing — given growth in all product lines — may have been an added positive.
MLM’s business and earnings have been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida as well as Iowa. Higher spending from a number of states that it serves is likely to have aided revenues.
Overall, despite mixed volumes, pricing (strongest in aggregates) is likely to have supported margins. Higher pricing in upstream aggregates and cement businesses as well as disciplined cost management throughout the business are likely to aid quarterly results.
Meanwhile, inflation from hydrocarbon, rising liquid asphalt, insurance and labor may have been a negative. Higher operating costs and acquisition-related costs may have also been risks.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services) — which comprise 95% of total revenues — is pegged at $1,279 million, implying 21.3% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $57 million. This suggests no year-over-year change.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Martin Marietta 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.
Earnings ESP: Martin Marietta has an Earnings ESP of +1.40%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #1.
Shares of Boise Cascade have gained 50.2% over the past year. BCC’s earnings topped the consensus mark in all the last four quarters, with the average being 45.5%.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #1.
Shares of Louisiana-Pacific have gained 61.6% over the past year. LPX’s earnings topped the consensus mark in all the last four quarters, with the average being 10.5%.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +2.64% and a Zacks Rank #3.
Shares of WSO have gained 5.2% over the past year. WSO’s earnings topped the consensus mark in the trailing four quarters, with the average being 21.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.