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Eagle Materials (EXP) Q3 Earnings & Revenues Top, Up Y/Y
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Eagle Materials Inc. (EXP - Free Report) reported impressive third-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings and revenues topped the Zacks Consensus Estimate. The top and the bottom lines grew on a year-over-year basis as well.
The company’s results reflect higher gross sales price and sales volume, especially in the Heavy Materials segment. The acquisition of Battletown Aggregates and the Stockton Terminal Acquisition contributed $2 million and $11.2 million to revenues, respectively, thus driving its uptrend. On the other hand, the quarter’s costs and expenses portray a year-over-year rise, thus impacting the uptrend to some extent. This was attributable to high operating costs, salary and incentive compensation, information technology upgrades, and increased legal and professional expenses.
Nonetheless, the company is optimistic about its long-term growth, thanks to improving trends in population growth, well-documented housing production deficits and supply shortages, and a multi-year federal highway bill further boosted by state-level infrastructure spending.
Inside the Headlines
Eagle Materials reported record earnings of $3.72 per share, which notably surpassed the Zacks Consensus Estimate of earnings of $3.56 per share by 4.5%. Also, the metric increased 16.3% from the year-ago quarter’s earnings level of $3.20 per share.
Eagle Materials Inc Price, Consensus and EPS Surprise
Heavy Materials (including cement, concrete and aggregates): This segment reported fiscal third-quarter revenues of $331.9 million, which increased 20% from $276.2 million reported a year ago. The segment’s operating margin improved 450 basis points (bps) to 19.2% year over year, backed by favorable sales pricing.
Within the Heavy Materials umbrella, Cement’s revenues (excluding Joint Venture and intersegment revenue) rose 24% to $274.2 million from the year-ago quarter’s value of $221 million. The sales volume of Cement increased 7% year over year to 1,824 metric tons from 1,699 metric tons. Also, the average net sales price per ton grew 13% to $151.32 year over year.
Concrete and Aggregates’ revenues rose 5% year over year to $57.8 million from $55.2 million. The sales volume of Concrete declined 13% to 308 metric cubic yards, while the same for Aggregates grew 65% to 1,034 metric tons on a year-over-year basis. The average net sales price for Cement (per cubic yard) and Aggregates (per ton) were $149.54 and $11.18, up 11% and down 4%, respectively, compared with the year-ago period.
Light Materials (including gypsum wallboard and recycled paperboard): This segment’s revenues were $226.9 million, down 3.6% year over year from $235.3 million. The operating margin depreciated 400 bps to 36.4% on the back of lower gross sales price and high operating costs.
Under the Light Materials’ umbrella, the quarterly revenues of Gypsum Wallboard were $201 million, down 5% from $212 million reported in the year-ago quarter. The sales volume dwindled 1% to 722 million square feet, and the average net sales price per thousand square feet declined 4% to $227.78 on a year-over-year basis.
Recycled Paperboard’s revenues grew 11% year over year to $25.9 million from $23.3 million. The sales volume also reflected an uptrend of 9% to 84 metric tons from 77 metric tons reported in the year-ago quarter. On the other hand, the average net sales price per ton declined 6% to $559.49 from $594.93 reported in the prior year.
Operating Highlights
The gross profit of Eagle Materials increased 14% year over year to $180.6 million. The gross margin was 32.3%, which increased 130 bps year over year from 31%. Adjusted EBITDA of $218.6 million increased 10% year over year.
Liquidity and Cash Flow
As of Dec 31, 2023, Eagle Materials had cash and cash equivalents of $48.9 million compared with $15.2 million at the fiscal 2023-end. Also, it has $750 million of unsecured revolving credit facility including a $200 million term loan facility. Long-term debt was $63 million, down from $66.5 million as of the fiscal 2023-end.
Net cash provided by operations was $500.4 million for the first nine months, up from $480.1 million reported in the year-ago period.
Weyerhaeuser Company (WY - Free Report) reported mixed results for fourth-quarter 2023. Its earnings beat the Zacks Consensus Estimate but net sales missed the same.
On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West and a decrease in domestic sales volumes. The company optimized its timberlands holdings with the strategic acquisition of mature and highly productive acreage in the Carolinas and Mississippi and the divestiture of less strategic acreage in South Carolina. Also, it captured additional operational excellence improvements, grew its Natural Climate Solutions business and sold its first forest carbon credits in the voluntary market.
United Rentals, Inc. (URI - Free Report) reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity. Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwinds that the company sees across infrastructure, manufacturing and energy and power.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
On a year-over-year basis, both the top and bottom lines increased. The upside was backed by the supply of both new and existing homes as affordable price points remain limited and robust housing demand is supported by favorable demographics amid elevated inflation and mortgage/interest rates.
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Eagle Materials (EXP) Q3 Earnings & Revenues Top, Up Y/Y
Eagle Materials Inc. (EXP - Free Report) reported impressive third-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings and revenues topped the Zacks Consensus Estimate. The top and the bottom lines grew on a year-over-year basis as well.
The company’s results reflect higher gross sales price and sales volume, especially in the Heavy Materials segment. The acquisition of Battletown Aggregates and the Stockton Terminal Acquisition contributed $2 million and $11.2 million to revenues, respectively, thus driving its uptrend. On the other hand, the quarter’s costs and expenses portray a year-over-year rise, thus impacting the uptrend to some extent. This was attributable to high operating costs, salary and incentive compensation, information technology upgrades, and increased legal and professional expenses.
Nonetheless, the company is optimistic about its long-term growth, thanks to improving trends in population growth, well-documented housing production deficits and supply shortages, and a multi-year federal highway bill further boosted by state-level infrastructure spending.
Inside the Headlines
Eagle Materials reported record earnings of $3.72 per share, which notably surpassed the Zacks Consensus Estimate of earnings of $3.56 per share by 4.5%. Also, the metric increased 16.3% from the year-ago quarter’s earnings level of $3.20 per share.
Eagle Materials Inc Price, Consensus and EPS Surprise
Eagle Materials Inc price-consensus-eps-surprise-chart | Eagle Materials Inc Quote
Quarterly revenues of $558.8 million topped the consensus mark of $537 million by 4% and grew 9.3% from the year-ago period’s value of $511.5 million.
Segmental Discussion
Heavy Materials (including cement, concrete and aggregates): This segment reported fiscal third-quarter revenues of $331.9 million, which increased 20% from $276.2 million reported a year ago. The segment’s operating margin improved 450 basis points (bps) to 19.2% year over year, backed by favorable sales pricing.
Within the Heavy Materials umbrella, Cement’s revenues (excluding Joint Venture and intersegment revenue) rose 24% to $274.2 million from the year-ago quarter’s value of $221 million. The sales volume of Cement increased 7% year over year to 1,824 metric tons from 1,699 metric tons. Also, the average net sales price per ton grew 13% to $151.32 year over year.
Concrete and Aggregates’ revenues rose 5% year over year to $57.8 million from $55.2 million. The sales volume of Concrete declined 13% to 308 metric cubic yards, while the same for Aggregates grew 65% to 1,034 metric tons on a year-over-year basis. The average net sales price for Cement (per cubic yard) and Aggregates (per ton) were $149.54 and $11.18, up 11% and down 4%, respectively, compared with the year-ago period.
Light Materials (including gypsum wallboard and recycled paperboard): This segment’s revenues were $226.9 million, down 3.6% year over year from $235.3 million. The operating margin depreciated 400 bps to 36.4% on the back of lower gross sales price and high operating costs.
Under the Light Materials’ umbrella, the quarterly revenues of Gypsum Wallboard were $201 million, down 5% from $212 million reported in the year-ago quarter. The sales volume dwindled 1% to 722 million square feet, and the average net sales price per thousand square feet declined 4% to $227.78 on a year-over-year basis.
Recycled Paperboard’s revenues grew 11% year over year to $25.9 million from $23.3 million. The sales volume also reflected an uptrend of 9% to 84 metric tons from 77 metric tons reported in the year-ago quarter. On the other hand, the average net sales price per ton declined 6% to $559.49 from $594.93 reported in the prior year.
Operating Highlights
The gross profit of Eagle Materials increased 14% year over year to $180.6 million. The gross margin was 32.3%, which increased 130 bps year over year from 31%. Adjusted EBITDA of $218.6 million increased 10% year over year.
Liquidity and Cash Flow
As of Dec 31, 2023, Eagle Materials had cash and cash equivalents of $48.9 million compared with $15.2 million at the fiscal 2023-end. Also, it has $750 million of unsecured revolving credit facility including a $200 million term loan facility. Long-term debt was $63 million, down from $66.5 million as of the fiscal 2023-end.
Net cash provided by operations was $500.4 million for the first nine months, up from $480.1 million reported in the year-ago period.
Zacks Rank
Eagle Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Construction Releases
Weyerhaeuser Company (WY - Free Report) reported mixed results for fourth-quarter 2023. Its earnings beat the Zacks Consensus Estimate but net sales missed the same.
On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West and a decrease in domestic sales volumes. The company optimized its timberlands holdings with the strategic acquisition of mature and highly productive acreage in the Carolinas and Mississippi and the divestiture of less strategic acreage in South Carolina. Also, it captured additional operational excellence improvements, grew its Natural Climate Solutions business and sold its first forest carbon credits in the voluntary market.
United Rentals, Inc. (URI - Free Report) reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity. Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwinds that the company sees across infrastructure, manufacturing and energy and power.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
On a year-over-year basis, both the top and bottom lines increased. The upside was backed by the supply of both new and existing homes as affordable price points remain limited and robust housing demand is supported by favorable demographics amid elevated inflation and mortgage/interest rates.