We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.4%, but revenues missed the same by 1.6%. On a year-over-year basis, the earnings of heavy construction materials and light building materials producers increased 14% and revenues rose 3%.
Eagle Materials’ earnings topped the consensus mark in three of the last four quarters and missed in one, the average surprise being 5.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has decreased to $3.56 per share from $3.57 over the past 60 days. The estimated figure indicates an increase of 11.3% from the year-ago level.
The consensus mark for revenues is pinned at $537.23 million, implying 5% year-over-year growth.
Factors to Note
Improved demand trends and good pricing momentum are expected to have contributed to Eagle Materials’ fiscal third-quarter performance. Given the limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities, EXP is likely to have witnessed higher wallboard and cement volumes.
Higher non-residential construction activities and incremental federal funding from the enacted Infrastructure Investment and Jobs Act are likely to have acted as a tailwind for third-quarter fiscal 2024.
Heavy Materials’ demand and cement pricing remain solid, which is likely to have aided the segment’s results. For the Heavy Materials segment (which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenues), the consensus mark for the segment’s revenues (which accounted for 54.3% of total revenues in fiscal 2023) is currently pegged at $320 million, depicting an increase from $276 million registered a year ago.
Within the Heavy Materials umbrella, the consensus mark for Cement revenues is currently pegged at $261 million, indicating an increase from $221 million reported a year ago. The consensus estimate for Concrete and Aggregates’ revenues is presently pegged at $59 million, indicating an increase from $55 million recorded a year ago.
Meanwhile, the backlog of housing construction is likely to have supported resilient wallboard shipments and orders within the Light Materials segment. However, lower pricing might have hurt the results in the to-be-reported quarter.
The consensus mark for the Light Materials sector’s (which includes Gypsum Wallboard and Paperboard revenues) revenues (which accounted for 45.7% of total revenues in fiscal 2023) is currently pegged at $210 million, down from $235 million a year ago.
Within the Light Materials sector, the consensus mark for Gypsum Wallboard revenues is currently pegged at $195 million, down from $212 million reported a year ago. The consensus mark for Gypsum Paperboard revenues is presently pegged at $19.01 million, down from $23.32 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Eagle Materials 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.
EXP has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, per our model, have the right combination of elements to post an earnings beat this reporting cycle.
LPX’s earnings for the to-be-reported quarter are expected to decline 18%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 98.3%.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3 at present.
MLM’s earnings topped the consensus mark in each of the last four quarters, delivering an average surprise of 37.3%. Earnings for the to-be-reported quarter are expected to rise 30.6% year over year.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3 at present.
VMC’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, delivering an average surprise of 13.6%. Earnings for the to-be-reported quarter are expected to grow 25% year over year.
Image: Bigstock
Here's What to Expect From Eagle Materials' (EXP) Q3 Earnings
Eagle Materials Inc. (EXP - Free Report) is scheduled to report third-quarter fiscal 2024 (ended Dec 31, 2023) results on Jan 25, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.4%, but revenues missed the same by 1.6%. On a year-over-year basis, the earnings of heavy construction materials and light building materials producers increased 14% and revenues rose 3%.
Eagle Materials’ earnings topped the consensus mark in three of the last four quarters and missed in one, the average surprise being 5.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has decreased to $3.56 per share from $3.57 over the past 60 days. The estimated figure indicates an increase of 11.3% from the year-ago level.
Eagle Materials Inc Price and EPS Surprise
Eagle Materials Inc price-eps-surprise | Eagle Materials Inc Quote
The consensus mark for revenues is pinned at $537.23 million, implying 5% year-over-year growth.
Factors to Note
Improved demand trends and good pricing momentum are expected to have contributed to Eagle Materials’ fiscal third-quarter performance. Given the limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities, EXP is likely to have witnessed higher wallboard and cement volumes.
Higher non-residential construction activities and incremental federal funding from the enacted Infrastructure Investment and Jobs Act are likely to have acted as a tailwind for third-quarter fiscal 2024.
Heavy Materials’ demand and cement pricing remain solid, which is likely to have aided the segment’s results. For the Heavy Materials segment (which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenues), the consensus mark for the segment’s revenues (which accounted for 54.3% of total revenues in fiscal 2023) is currently pegged at $320 million, depicting an increase from $276 million registered a year ago.
Within the Heavy Materials umbrella, the consensus mark for Cement revenues is currently pegged at $261 million, indicating an increase from $221 million reported a year ago. The consensus estimate for Concrete and Aggregates’ revenues is presently pegged at $59 million, indicating an increase from $55 million recorded a year ago.
Meanwhile, the backlog of housing construction is likely to have supported resilient wallboard shipments and orders within the Light Materials segment. However, lower pricing might have hurt the results in the to-be-reported quarter.
The consensus mark for the Light Materials sector’s (which includes Gypsum Wallboard and Paperboard revenues) revenues (which accounted for 45.7% of total revenues in fiscal 2023) is currently pegged at $210 million, down from $235 million a year ago.
Within the Light Materials sector, the consensus mark for Gypsum Wallboard revenues is currently pegged at $195 million, down from $212 million reported a year ago. The consensus mark for Gypsum Paperboard revenues is presently pegged at $19.01 million, down from $23.32 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Eagle Materials 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.
EXP has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, per our model, have the right combination of elements to post an earnings beat this reporting cycle.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LPX’s earnings for the to-be-reported quarter are expected to decline 18%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 98.3%.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3 at present.
MLM’s earnings topped the consensus mark in each of the last four quarters, delivering an average surprise of 37.3%. Earnings for the to-be-reported quarter are expected to rise 30.6% year over year.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3 at present.
VMC’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, delivering an average surprise of 13.6%. Earnings for the to-be-reported quarter are expected to grow 25% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.