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Martin Marietta (MLM) to Report Q4 Earnings: What's in Store?
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Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 15, before the opening bell.
In the last-reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.1% and revenues (products and services) topped the same by 0.6%. On a year-over-year basis, the earnings of this aggregates producer increased 10.4%. Products and services revenues rose 14.9%. Total quarterly revenues (including Product and Services and Freight revenues) were up 16.3% 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 8.1%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s fourth-quarter earnings has decreased to $3.02 from $3.26 per share in the past 30 days. The estimated figure indicates a 4.1% decrease on a year-over-year basis. The consensus estimate for revenues is pegged at $1.42 billion, indicating a year-over-year rise of 1.3%.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta’s quarterly revenues are expected to have witnessed year-over-year growth in the fourth quarter, given the strong pricing gains in aggregates and strength in public construction. Improved visibility in non-residential construction and contributions from acquisitions are also likely to have been the positives.
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. 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. We expect aggregate pricing to increase to $18.50, suggesting 22.6% year-over-year growth. We expect aggregate revenues to increase 13.5% year over year to $939 million.
We expect cement revenues to increase 27.4% year over year to $173.4 million. Cement pricing is also expected to increase 14.4% to $145.50 per ton.
However, tough year-over-year comparisons with respect to weather are expected to act as a headwind in the quarter. Notably, in the year-ago period, the weather was solid, contributing to the company’s quarterly performance.
Also, 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.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services), which comprises 95% of total revenues, is pegged at $1,382 million, implying growth from $1,337 million a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $70 million, suggesting a year-over-year growth from $68 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not 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 an Earnings ESP of -2.07% and a Zacks Rank #4 (Sell).
Vulcan: The construction aggregates company’s focus is on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing and Logistics Innovation — which 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. However, the higher inflationary challenges and adverse weather are expected to act as headwinds.
The company will report its fourth-quarter 2022 results on Feb 16, 2023. The Zacks Consensus Estimate for VMC’s fourth-quarter earnings indicates a 5.6% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $1.82 billion, indicating a year-over-year rise of 13.1%.
Some Recent Construction Releases
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate. Post the results, shares of the technical and management support services provider slipped 0.01% on Feb 6.
On a year-over-year basis, ACM’s bottom line declined despite top-line growth. The company’s strong top-line performance was backed by strong organic NSR growth.
Otis Worldwide Corporation (OTIS - Free Report) reported solid fourth-quarter 2022 results. Its earnings and sales surpassed the Zacks Consensus Estimate. Its quarterly results reflected strong performance, including mid-single-digit organic sales growth in New Equipment and Service and continued operating profit margin expansion in the Service business.
Otis remains focused on strong portfolio growth and generating a solid New Equipment backlog. It also intends to expand operating margins, return cash to shareholders through a capital-allocation strategy and pursue additional progress toward ESG goals.
Image: Bigstock
Martin Marietta (MLM) to Report Q4 Earnings: What's in Store?
Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 15, before the opening bell.
In the last-reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.1% and revenues (products and services) topped the same by 0.6%. On a year-over-year basis, the earnings of this aggregates producer increased 10.4%. Products and services revenues rose 14.9%. Total quarterly revenues (including Product and Services and Freight revenues) were up 16.3% 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 8.1%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s fourth-quarter earnings has decreased to $3.02 from $3.26 per share in the past 30 days. The estimated figure indicates a 4.1% decrease on a year-over-year basis. The consensus estimate for revenues is pegged at $1.42 billion, indicating a year-over-year rise of 1.3%.
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 fourth quarter, given the strong pricing gains in aggregates and strength in public construction. Improved visibility in non-residential construction and contributions from acquisitions are also likely to have been the positives.
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. 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. We expect aggregate pricing to increase to $18.50, suggesting 22.6% year-over-year growth. We expect aggregate revenues to increase 13.5% year over year to $939 million.
We expect cement revenues to increase 27.4% year over year to $173.4 million. Cement pricing is also expected to increase 14.4% to $145.50 per ton.
However, tough year-over-year comparisons with respect to weather are expected to act as a headwind in the quarter. Notably, in the year-ago period, the weather was solid, contributing to the company’s quarterly performance.
Also, 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.
Other Projections
The Zacks Consensus Estimate for the Building Material segment revenues (product and services), which comprises 95% of total revenues, is pegged at $1,382 million, implying growth from $1,337 million a year ago.
The consensus estimate for Magnesia Specialties revenues (product and services) is currently pegged at $70 million, suggesting a year-over-year growth from $68 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not 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 an Earnings ESP of -2.07% and a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Notable Release
Vulcan: The construction aggregates company’s focus is on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing and Logistics Innovation — which 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. However, the higher inflationary challenges and adverse weather are expected to act as headwinds.
The company will report its fourth-quarter 2022 results on Feb 16, 2023. The Zacks Consensus Estimate for VMC’s fourth-quarter earnings indicates a 5.6% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $1.82 billion, indicating a year-over-year rise of 13.1%.
Some Recent Construction Releases
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate. Post the results, shares of the technical and management support services provider slipped 0.01% on Feb 6.
On a year-over-year basis, ACM’s bottom line declined despite top-line growth. The company’s strong top-line performance was backed by strong organic NSR growth.
Otis Worldwide Corporation (OTIS - Free Report) reported solid fourth-quarter 2022 results. Its earnings and sales surpassed the Zacks Consensus Estimate. Its quarterly results reflected strong performance, including mid-single-digit organic sales growth in New Equipment and Service and continued operating profit margin expansion in the Service business.
Otis remains focused on strong portfolio growth and generating a solid New Equipment backlog. It also intends to expand operating margins, return cash to shareholders through a capital-allocation strategy and pursue additional progress toward ESG goals.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.