Eagle Materials Q2 revenue beats estimates, helped by public infrastructure demand
Overview
U.S. construction materials maker's fiscal Q2 revenue rose, beating analyst expectations
Company repurchased ~$62 mln of its own shares during the quarter
Outlook
Company says higher interest rates and economic uncertainty may continue to affect construction activity
Company continues to invest in facility modernizations to enhance efficiency and production capacity
Result Drivers
HIGHER COSTS - Co said increased diesel prices and higher interest rates drove up transportation and operating costs across business lines
PUBLIC INFRASTRUCTURE DEMAND - Spending on public infrastructure and large private non-residential projects supported demand for Heavy Materials products
WALLBOARD PRICING PRESSURE - Lower net sales prices for Gypsum Wallboard and higher freight costs weighed on Light Materials earnings
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $652.70 mln | $636.34 mln (11 Analysts) |
Q2 EPS | $3.63 | ||
Q2 Net Earnings | $111.50 mln | ||
Q2 Adjusted EBITDA | $202.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy."
Wall Street's median 12-month price target for Eagle Materials Inc is $195.66, about 1.5% above its November 3 closing price of $192.76
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Nov 4 - Heidelberg Materials deepens cost cuts after forecast-beating Q3 results
Nov 2 - UK's Ibstock lowers annual profit view for the second time, shares slump
Nov 3 - LGI Homes Q3 adjusted EPS beats on higher closings, cost controls
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)