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Martin Marietta (MLM) Stock Up on Q4 Earnings & Revenue Beat
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Martin Marietta Materials, Inc. (MLM - Free Report) reported better-than-expected fourth-quarter 2021 results, wherein earnings and revenues (products and services) beat the respective Zacks Consensus Estimate. Earnings and revenues also increased on a year-over-year basis backed by improved pricing across businesses as well as disciplined cost management.
Shares of this Raleigh, NC-based aggregate/cement producer gained 1.8% following the earnings release.
The company remains optimistic regarding its prospects for 2022, given secular demand trends across its geographic footprint, including single-family housing strength, key heavy industrial projects, expanded federal- and state-level infrastructure investments as well as light non-residential recovery.
Inside the Headlines
Martin Marietta reported adjusted earnings per share from continuing operations of $3.15, beating the Zacks Consensus Estimate of $2.94 by 7.1%. The metric increased 7.5% from the year-ago level of $2.93 per share. The upside was mainly driven by solid shipments, mostly across all its business lines, and acquisitions.
Total quarterly revenues (including Product and Services as well as Freight revenues) came in at $1,496.4 million, up 26.9% from the year-ago figure of $1,179.6 million. Products and services revenues of $1,404.9 million, accounting for 94% of total revenues, increased 26.5% year over year and topped the consensus mark of $1,356 million. The upside was driven by organic shipment growth, pricing gains and value-enhancing acquisitions.
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
Building Materials (including aggregates, cement, ready-mixed concrete, asphalt, paving product lines and Freight) reported revenues of $1,422.8 million, which increased 27.3% year over year. Within the segment, product and services revenues amounted to $1,337.3 million, up 26.9% from the year-ago level. Freight revenues of $85.5 million were up from $63.1 million in the year-ago period.
Again in Product and Services, Aggregates’ revenues of $827 million grew 22.1% from the year-ago quarter. Also, Cement revenues rose 12.7% year over year to $136.1 million. Ready Mixed Concrete’s revenues grew 22.3% year over year to $321.3 million. Revenues in Asphalt and Paving product lines also increased 122.3% from the year-ago quarter to $170.7 million.
Shipments & Pricing
Aggregates shipments improved 19.3% year over year (up 9.3% organically) and pricing advanced 1.4% (up 2.8% organically).
Geographically, East Group shipments edged up 13.8% from the prior year, given strong construction activity across all three primary end-use markets — infrastructure, private, and residential — and Minnesota-based Tiller acquisition. Adjusted pricing in the region improved 2.7% from the prior-year quarter. West Groups’ aggregate shipments surged 30.5% from a year ago. Pricing in the region grew 6.1% year over year (up 2.6% on a mix-basis).
Cement shipments advanced 0.3% year over year. Pricing improved 11.6% (9.9% on a mix-adjusted basis) year over year.
Within the Downstream business, ready mixed concrete shipments increased 8.3% from the prior-year quarter owing to greater demand from Texas and Colorado. Organic pricing grew 3.3% from the year-ago quarter. Including the acquired Arizona operations, ready mixed concrete shipments and pricing gained 18.9% and 3.1%, respectively.
Asphalt shipments grew 15.8%, courtesy of favorable weather conditions in Colorado. Pricing also gained 7.1% from a year ago.
Magnesia Specialties reported product revenues of $67.6 million, up 18.8% year over year.
Operating Highlights
Gross margin came in at 23.2%, which decreased from 27.6% a year ago. Adjusted EBITDA of $393.7 million, however, increased 17.5% year over year.
Liquidity and Cash Flow
As of Dec 31, 2021, Martin Marietta had cash and cash equivalents of $258.4 million compared with $207.3 million at 2020-end. Long-term debt (excluding current maturities) was $5,100.8 million, up from $2,625.8 million at 2020-end. Net cash provided by operations was $1,137.7 million for 2021, up from $1,050.1 million in 2020. It had $1.2 billion of unused borrowing capacity on the existing credit facility at December-end.
The company returned $147.8 million to shareholders in 2021 through dividend payments. Since 2015, it has returned more than $1.9 billion through dividends and share buybacks.
2022 Guidance
Martin Marietta provided its guidance for the current year, taking into consideration the recently completed acquisitions, favorable pricing dynamics and attractive underlying fundamentals.
The company expects products and services revenues in the range of $5,780-$5,980 million, gross profit in the $1,575-$1,695 billion band, selling, general and administrative expenses within $405-$415 million as well as adjusted EBITDA between $1,700 million and $1,800 million. Net earnings are anticipated in the $805-$915 million range.
Total aggregate shipment growth is expected in the range of 7-10% (1-4% organically). Total pricing is expected to grow between 5% and 8% (5% and 8% organically).
D.R. Horton’s quarterly earnings and revenues beat the respective Zacks Consensus Estimate and improved on a year-over-year basis. The upside reflects a robust housing market, significant market share gains, a vast geographic footprint and varied product offerings across multiple brands.
Both earnings and revenues for PulteGroup topped the Zacks Consensus Estimate and improved 64.1% and 36.5% year over year, respectively, on the back of a solid housing market backdrop and resilient economy.
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Martin Marietta (MLM) Stock Up on Q4 Earnings & Revenue Beat
Martin Marietta Materials, Inc. (MLM - Free Report) reported better-than-expected fourth-quarter 2021 results, wherein earnings and revenues (products and services) beat the respective Zacks Consensus Estimate. Earnings and revenues also increased on a year-over-year basis backed by improved pricing across businesses as well as disciplined cost management.
Shares of this Raleigh, NC-based aggregate/cement producer gained 1.8% following the earnings release.
The company remains optimistic regarding its prospects for 2022, given secular demand trends across its geographic footprint, including single-family housing strength, key heavy industrial projects, expanded federal- and state-level infrastructure investments as well as light non-residential recovery.
Inside the Headlines
Martin Marietta reported adjusted earnings per share from continuing operations of $3.15, beating the Zacks Consensus Estimate of $2.94 by 7.1%. The metric increased 7.5% from the year-ago level of $2.93 per share. The upside was mainly driven by solid shipments, mostly across all its business lines, and acquisitions.
Total quarterly revenues (including Product and Services as well as Freight revenues) came in at $1,496.4 million, up 26.9% from the year-ago figure of $1,179.6 million. Products and services revenues of $1,404.9 million, accounting for 94% of total revenues, increased 26.5% year over year and topped the consensus mark of $1,356 million. The upside was driven by organic shipment growth, pricing gains and value-enhancing acquisitions.
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
Building Materials (including aggregates, cement, ready-mixed concrete, asphalt, paving product lines and Freight) reported revenues of $1,422.8 million, which increased 27.3% year over year. Within the segment, product and services revenues amounted to $1,337.3 million, up 26.9% from the year-ago level. Freight revenues of $85.5 million were up from $63.1 million in the year-ago period.
Again in Product and Services, Aggregates’ revenues of $827 million grew 22.1% from the year-ago quarter. Also, Cement revenues rose 12.7% year over year to $136.1 million. Ready Mixed Concrete’s revenues grew 22.3% year over year to $321.3 million. Revenues in Asphalt and Paving product lines also increased 122.3% from the year-ago quarter to $170.7 million.
Shipments & Pricing
Aggregates shipments improved 19.3% year over year (up 9.3% organically) and pricing advanced 1.4% (up 2.8% organically).
Geographically, East Group shipments edged up 13.8% from the prior year, given strong construction activity across all three primary end-use markets — infrastructure, private, and residential — and Minnesota-based Tiller acquisition. Adjusted pricing in the region improved 2.7% from the prior-year quarter. West Groups’ aggregate shipments surged 30.5% from a year ago. Pricing in the region grew 6.1% year over year (up 2.6% on a mix-basis).
Cement shipments advanced 0.3% year over year. Pricing improved 11.6% (9.9% on a mix-adjusted basis) year over year.
Within the Downstream business, ready mixed concrete shipments increased 8.3% from the prior-year quarter owing to greater demand from Texas and Colorado. Organic pricing grew 3.3% from the year-ago quarter. Including the acquired Arizona operations, ready mixed concrete shipments and pricing gained 18.9% and 3.1%, respectively.
Asphalt shipments grew 15.8%, courtesy of favorable weather conditions in Colorado. Pricing also gained 7.1% from a year ago.
Magnesia Specialties reported product revenues of $67.6 million, up 18.8% year over year.
Operating Highlights
Gross margin came in at 23.2%, which decreased from 27.6% a year ago. Adjusted EBITDA of $393.7 million, however, increased 17.5% year over year.
Liquidity and Cash Flow
As of Dec 31, 2021, Martin Marietta had cash and cash equivalents of $258.4 million compared with $207.3 million at 2020-end. Long-term debt (excluding current maturities) was $5,100.8 million, up from $2,625.8 million at 2020-end. Net cash provided by operations was $1,137.7 million for 2021, up from $1,050.1 million in 2020. It had $1.2 billion of unused borrowing capacity on the existing credit facility at December-end.
The company returned $147.8 million to shareholders in 2021 through dividend payments. Since 2015, it has returned more than $1.9 billion through dividends and share buybacks.
2022 Guidance
Martin Marietta provided its guidance for the current year, taking into consideration the recently completed acquisitions, favorable pricing dynamics and attractive underlying fundamentals.
The company expects products and services revenues in the range of $5,780-$5,980 million, gross profit in the $1,575-$1,695 billion band, selling, general and administrative expenses within $405-$415 million as well as adjusted EBITDA between $1,700 million and $1,800 million. Net earnings are anticipated in the $805-$915 million range.
Total aggregate shipment growth is expected in the range of 7-10% (1-4% organically). Total pricing is expected to grow between 5% and 8% (5% and 8% organically).
Zacks Rank
Martin Marietta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Recent Construction Releases
D.R. Horton, Inc. (DHI - Free Report) reported impressive results for first-quarter fiscal 2022.
D.R. Horton’s quarterly earnings and revenues beat the respective Zacks Consensus Estimate and improved on a year-over-year basis. The upside reflects a robust housing market, significant market share gains, a vast geographic footprint and varied product offerings across multiple brands.
PulteGroup Inc. (PHM - Free Report) reported better-than-expected results for fourth-quarter 2021.
Both earnings and revenues for PulteGroup topped the Zacks Consensus Estimate and improved 64.1% and 36.5% year over year, respectively, on the back of a solid housing market backdrop and resilient economy.
M.D.C. Holdings, Inc.’s reported tepid results for fourth-quarter 2021.
Both the top and the bottom lines missed the respective Zacks Consensus Estimate. MDC provided a tepid guidance for first-quarter 2022 deliveries.