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Martin Marietta (MLM) to Report Q3 Earnings: What to Expect?
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Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 6.5% and revenues (products and services) topped the same by 2.9%. On a year-over-year basis, earnings of this aggregates producer increased 3.9%. Products and services revenues rose 17.6%. Total quarterly revenues (including Product and Services and Freight revenues) were up 19.1% from the year-ago quarter’s figure.
Martin Marietta’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with the average negative surprise being 8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s third-quarter earnings is pegged at $4.74 per share, suggesting a rise of 11.5% from the year-ago quarter’s reported figure of $4.25. The consensus estimate for net sales is pegged at $1.67 billion, indicating a 14.2% increase from the prior-year quarter’s reported figure.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta’s quarterly revenues and earnings are expected to have witnessed year-over-year growth in the third quarter, given the strong pricing gains in aggregates and strength in public construction. Improved visibility in residential and non-residential construction and contributions from acquisitions are also likely to have been the positives.
Infrastructure construction, particularly for aggregates-intensive highways and 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 may have been a tailwind.
However, inflation from hydrocarbon, rising liquid asphalt and diesel fuel costs, more transportation costs and insurance and labor cost may have impacted the bottom line of Martin Marietta and its peers like Vulcan Materials Company (VMC - Free Report) . Also, higher repair & maintenance costs, supply and contract costs and supply-chain bottlenecks are added concerns.
The business and earnings of MLM have been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida as well as Iowa. Delayed federal spending is likely to have ailed revenues.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services), which comprise 95% of total revenues, is pegged at $1,603 million, implying 8.4% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $71 million, suggesting a year-over-year decline of 1.4% from $72 million reported a year ago.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Vulcan: The construction aggregates company’s focus on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing and Logistics Innovation — will enhance the price performance and operating efficiencies. Vulcan has been generating higher earnings despite tepid revenues due to prudent cost-control efforts and increased pricing in aggregates. Its focus on a systematic inorganic strategy for expansion is adding to the positives.
VMC is likely to miss expectations when it reports third-quarter 2022 results on Nov 2, before the opening bell. It carries a Zacks Rank #3 and has an Earnings ESP of -3.07%.
Stocks With Favorable Combination
Here are two companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Based in Winchester, VA, Trex Company, Inc. (TREX - Free Report) — which manufactures and distributes decking, railing, and outdoor living products and accessories — topped earnings estimates in all the trailing four quarters, with the average surprise being 10.8%.
TREX is poised to beat expectations when it reports third-quarter 2022 results on Oct 31, after market close. It carries a Zacks Rank #3 and has an Earnings ESP of +25.62%, at present.
Continued investments by customers in enhancing their outdoor living experience are likely to have aided the company’s quarterly performance. Favorable pricing/mix and focus on cost reduction efforts and production efficiencies are added positives.
Headquartered in Dothan, AL, Construction Partners, Inc. (ROAD - Free Report) is a civil infrastructure company. Organic and inorganic growth opportunities in the attractive southeastern U.S. road construction/repair market are expected to drive the company’s growth. It missed earnings estimates in three the trailing four quarters and met once, with the average negative surprise being 75.6%.
ROAD is poised to beat expectations when it reports its fourth-quarter fiscal 2022 results. It carries a Zacks Rank #3 and has an Earnings ESP of +8.00%, at present.
Strong demand for infrastructure services throughout end markets in both the private and public sectors, consistent execution of its business model, and a growth strategy that focuses on operational performance and effective project execution are likely to have aided the company’s quarterly performance.
Image: Bigstock
Martin Marietta (MLM) to Report Q3 Earnings: What to Expect?
Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 6.5% and revenues (products and services) topped the same by 2.9%. On a year-over-year basis, earnings of this aggregates producer increased 3.9%. Products and services revenues rose 17.6%. Total quarterly revenues (including Product and Services and Freight revenues) were up 19.1% from the year-ago quarter’s figure.
Martin Marietta’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with the average negative surprise being 8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s third-quarter earnings is pegged at $4.74 per share, suggesting a rise of 11.5% from the year-ago quarter’s reported figure of $4.25. The consensus estimate for net sales is pegged at $1.67 billion, indicating a 14.2% increase from the prior-year quarter’s 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 and earnings are expected to have witnessed year-over-year growth in the third quarter, given the strong pricing gains in aggregates and strength in public construction. Improved visibility in residential and non-residential construction and contributions from acquisitions are also likely to have been the positives.
Infrastructure construction, particularly for aggregates-intensive highways and 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 may have been a tailwind.
However, inflation from hydrocarbon, rising liquid asphalt and diesel fuel costs, more transportation costs and insurance and labor cost may have impacted the bottom line of Martin Marietta and its peers like Vulcan Materials Company (VMC - Free Report) . Also, higher repair & maintenance costs, supply and contract costs and supply-chain bottlenecks are added concerns.
The business and earnings of MLM have been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida as well as Iowa. Delayed federal spending is likely to have ailed revenues.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services), which comprise 95% of total revenues, is pegged at $1,603 million, implying 8.4% growth from a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $71 million, suggesting a year-over-year decline of 1.4% from $72 million reported a year ago.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, MLM has a Zacks Rank #3 (Hold) and an Earnings ESP of -1.99%. You can see the complete list of today’s Zacks #1 Rank stocks here.
About VMC
Vulcan: The construction aggregates company’s focus on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing and Logistics Innovation — will enhance the price performance and operating efficiencies. Vulcan has been generating higher earnings despite tepid revenues due to prudent cost-control efforts and increased pricing in aggregates. Its focus on a systematic inorganic strategy for expansion is adding to the positives.
VMC is likely to miss expectations when it reports third-quarter 2022 results on Nov 2, before the opening bell. It carries a Zacks Rank #3 and has an Earnings ESP of -3.07%.
Stocks With Favorable Combination
Here are two companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Based in Winchester, VA, Trex Company, Inc. (TREX - Free Report) — which manufactures and distributes decking, railing, and outdoor living products and accessories — topped earnings estimates in all the trailing four quarters, with the average surprise being 10.8%.
TREX is poised to beat expectations when it reports third-quarter 2022 results on Oct 31, after market close. It carries a Zacks Rank #3 and has an Earnings ESP of +25.62%, at present.
Continued investments by customers in enhancing their outdoor living experience are likely to have aided the company’s quarterly performance. Favorable pricing/mix and focus on cost reduction efforts and production efficiencies are added positives.
Headquartered in Dothan, AL, Construction Partners, Inc. (ROAD - Free Report) is a civil infrastructure company. Organic and inorganic growth opportunities in the attractive southeastern U.S. road construction/repair market are expected to drive the company’s growth. It missed earnings estimates in three the trailing four quarters and met once, with the average negative surprise being 75.6%.
ROAD is poised to beat expectations when it reports its fourth-quarter fiscal 2022 results. It carries a Zacks Rank #3 and has an Earnings ESP of +8.00%, at present.
Strong demand for infrastructure services throughout end markets in both the private and public sectors, consistent execution of its business model, and a growth strategy that focuses on operational performance and effective project execution are likely to have aided the company’s quarterly performance.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.