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Martin Marietta (MLM) to Post Q1 Earnings: What to Expect?
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Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report first-quarter 2022 results on May 3, before the opening bell.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 7.1% and revenues (products and services) beat the same by 3.6%. On a year-over-year basis, earnings of this aggregates producer increased 7.5%, and products and services revenues rose 26.5%. Total quarterly revenues (including Product and Services and Freight revenues) were up 26.9% 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 28%.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings has decreased to 71 cents from 82 cents per share over the past 30 days. The estimated figure suggests a 31.7% decrease from $1.04 per share reported in the year-ago period. The consensus mark for revenues is pegged at $1.12 billion, which calls for 21.4% growth from the prior-year reported figure.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta’s quarterly revenues are expected to have witnessed year-over-year growth in the first quarter, given the solid product demand and pricing gains across all product lines. Improved visibility in non-residential construction and strong residential construction are likely to have been positives.
Infrastructure construction — particularly for aggregates intensive highways, roads and streets — might have also contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Also, resilient pricing — given growth in all product lines — may have been a 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, higher pricing in upstream aggregates and cement businesses as well as disciplined cost management throughout the business are likely to aid quarterly results.
However, inflation from hydrocarbon, rising liquid asphalt and diesel fuel costs, insurance and labor cost may have been a negative.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services) — which comprise 95% of total revenues — is pegged at $1,010 million, implying 17.9% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $65 million. This suggests no year-over-year change.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Martin Marietta this time around. That is because a stock needs to have both, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Martin Marietta has an Earnings ESP of +9.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here is a company in the Zacks Construction sector, which according to our model has the right combination of elements to post an earnings beat in their respective quarters to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3.
LPX’s earnings topped the consensus mark in all the last four quarters, with the average being 13.3%.
A Few Recent Construction Releases
United Rentals, Inc. (URI - Free Report) reported better-than-expected first-quarter 2022 results. Better fleet productivity on broad-based rental demand in construction and industrial verticals, higher total and rental revenues along with stronger pricing helped the company start 2022 on a stronger note.
URI also lifted its full-year guidance for total revenues, adjusted EBITDA and free cash flow, given customer sentiments and solid project activity.
NVR, Inc. (NVR - Free Report) reported first-quarter 2022 results, with earnings and revenues beating the respective Zacks Consensus Estimate and increasing year over year.
NVR’s first-quarter results benefited from a higher average price of settlements and lower lumber prices.
Image: Bigstock
Martin Marietta (MLM) to Post Q1 Earnings: What to Expect?
Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report first-quarter 2022 results on May 3, before the opening bell.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 7.1% and revenues (products and services) beat the same by 3.6%. On a year-over-year basis, earnings of this aggregates producer increased 7.5%, and products and services revenues rose 26.5%. Total quarterly revenues (including Product and Services and Freight revenues) were up 26.9% 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 28%.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings has decreased to 71 cents from 82 cents per share over the past 30 days. The estimated figure suggests a 31.7% decrease from $1.04 per share reported in the year-ago period. The consensus mark for revenues is pegged at $1.12 billion, which calls for 21.4% 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
Martin Marietta’s quarterly revenues are expected to have witnessed year-over-year growth in the first quarter, given the solid product demand and pricing gains across all product lines. Improved visibility in non-residential construction and strong residential construction are likely to have been positives.
Infrastructure construction — particularly for aggregates intensive highways, roads and streets — might have also contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Also, resilient pricing — given growth in all product lines — may have been a 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, higher pricing in upstream aggregates and cement businesses as well as disciplined cost management throughout the business are likely to aid quarterly results.
However, inflation from hydrocarbon, rising liquid asphalt and diesel fuel costs, insurance and labor cost may have been a negative.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services) — which comprise 95% of total revenues — is pegged at $1,010 million, implying 17.9% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $65 million. This suggests no year-over-year change.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Martin Marietta this time around. That is because a stock needs to have both, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Martin Marietta has an Earnings ESP of +9.30%. 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 #4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock With Favorable Combination
Here is a company in the Zacks Construction sector, which according to our model has the right combination of elements to post an earnings beat in their respective quarters to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3.
LPX’s earnings topped the consensus mark in all the last four quarters, with the average being 13.3%.
A Few Recent Construction Releases
United Rentals, Inc. (URI - Free Report) reported better-than-expected first-quarter 2022 results. Better fleet productivity on broad-based rental demand in construction and industrial verticals, higher total and rental revenues along with stronger pricing helped the company start 2022 on a stronger note.
URI also lifted its full-year guidance for total revenues, adjusted EBITDA and free cash flow, given customer sentiments and solid project activity.
NVR, Inc. (NVR - Free Report) reported first-quarter 2022 results, with earnings and revenues beating the respective Zacks Consensus Estimate and increasing year over year.
NVR’s first-quarter results benefited from a higher average price of settlements and lower lumber prices.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.