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Martin Marietta (MLM) to Report Q2 Earnings: What's in Store?
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Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report second-quarter 2024 results on Aug 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings per share (EPS) surpassed the Zacks Consensus Estimate by 2.7% but revenues missed the same by 3.4%. On a year-over-year basis, this aggregates producer’s earnings and total revenues were down 10.7% and 7.6%, respectively.
Notably, Martin Marietta’s earnings topped the consensus mark in the last four quarters, the average surprise being 12.6%.
Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s second-quarter earnings is pegged at $5.73 per share, which moved down from $5.77 in the past seven days. The estimated figure suggests growth of 2.3% from the year-ago quarter’s reported figure of $5.60.
The consensus estimate for net sales is pegged at $1.84 billion, indicating a 0.8% increase from the prior-year quarter’s figure of $1.82 billion.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta is anticipated to report second-quarter revenues showcasing strong pricing trends. However, this positive aspect is expected to be counterbalanced by the divestiture of the Texas cement and concrete businesses, alongside challenges associated with aggregates volumes organically due to adverse weather conditions.
Given the soft volume, strong pricing gains in aggregates, acceleration in infrastructure spending and accretive acquisitions will be key driving factors for the quarter. MLM’s business has been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida, and Iowa. Infrastructure construction, particularly for aggregates-intensive highways, roads and streets, might have also contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Also, BWI acquisitions are expected to offset some negatives owing to challenges in construction activity due to heavy rainfall.
Our model suggests Aggregates pricing to increase to $21.69 per ton, marking 12% year-over-year growth. We expect Aggregates revenues to increase to $1.28 billion from $1.06 billion a year ago.
We expect cement revenues to decline 37.6% year over year to $117.1 million, given the lower volume. Cement pricing is anticipated to rise 11.5% to $190.03 per ton. The same for Cement volume is pegged at 0.6 million tons, down 44% from a year ago.
We expect the Building Material segment revenues, which comprised 95.3% of total revenues in the first quarter of 2024, to grow 6.3% year over year to $1.85 billion. Our expectation for gross profit for the Building Material unit is pegged at $618 million versus $536.1 million reported a year ago.
Our model suggests Magnesia Specialties revenues are likely to increase 1.3% year over year to $81.5 million. We project gross profit for the Magnesia Specialties unit at $28.5 million versus $27.7 million reported a year ago.
However, inflation, higher liquid asphalt and diesel fuel costs, a rise in transportation and insurance costs, as well as labor costs, may have put pressure on the bottom line in the second quarter.
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.
Currently, MLM has an Earnings ESP of -4.46% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Peer Release
Vulcan Materials Company (VMC - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. On a year-over-year basis, earnings increased, but revenues declined due to lower Aggregate shipments.
Vulcan now anticipates adjusted EBITDA in the range of $2.00-$2.15 billion, down from the prior projection of $2.15-$2.30 billion. This indicates a 3.2% improvement from 2023 levels, considering the mid-point of the guidance. Net earnings are now expected to be in the range of $0.95-$1.07 billion (down from the prior projection of $1.07-$1.19) versus $933 million in the prior year.
Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
DY’s earnings for the to-be-reported quarter are expected to increase 7.4%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 30.2%.
Aspen Aerogels, Inc. (ASPN - Free Report) has an Earnings ESP of +9.38% and carries a Zacks Rank #3.
ASPN’s earnings topped the consensus mark in all the last four quarters, with the average being 68.2%. Earnings for the to-be-reported quarter are expected to grow 122.7% year over year.
Image: Bigstock
Martin Marietta (MLM) to Report Q2 Earnings: What's in Store?
Martin Marietta Materials, Inc. (MLM - Free Report) is scheduled to report second-quarter 2024 results on Aug 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings per share (EPS) surpassed the Zacks Consensus Estimate by 2.7% but revenues missed the same by 3.4%. On a year-over-year basis, this aggregates producer’s earnings and total revenues were down 10.7% and 7.6%, respectively.
Notably, Martin Marietta’s earnings topped the consensus mark in the last four quarters, the average surprise being 12.6%.
Trend in Estimate Revision
The Zacks Consensus Estimate for Martin Marietta’s second-quarter earnings is pegged at $5.73 per share, which moved down from $5.77 in the past seven days. The estimated figure suggests growth of 2.3% from the year-ago quarter’s reported figure of $5.60.
The consensus estimate for net sales is pegged at $1.84 billion, indicating a 0.8% increase from the prior-year quarter’s figure of $1.82 billion.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta Materials, Inc. price-eps-surprise | Martin Marietta Materials, Inc. Quote
Factors to Influence Q2
Martin Marietta is anticipated to report second-quarter revenues showcasing strong pricing trends. However, this positive aspect is expected to be counterbalanced by the divestiture of the Texas cement and concrete businesses, alongside challenges associated with aggregates volumes organically due to adverse weather conditions.
Given the soft volume, strong pricing gains in aggregates, acceleration in infrastructure spending and accretive acquisitions will be key driving factors for the quarter. MLM’s business has been sensitive to changes in construction spending, particularly housing and public construction in Texas, Colorado, North Carolina, Georgia, Florida, and Iowa. Infrastructure construction, particularly for aggregates-intensive highways, roads and streets, might have also contributed to its performance in the quarter, as contractors advanced projects that have been awarded and funded. Also, BWI acquisitions are expected to offset some negatives owing to challenges in construction activity due to heavy rainfall.
Our model suggests Aggregates pricing to increase to $21.69 per ton, marking 12% year-over-year growth. We expect Aggregates revenues to increase to $1.28 billion from $1.06 billion a year ago.
We expect cement revenues to decline 37.6% year over year to $117.1 million, given the lower volume. Cement pricing is anticipated to rise 11.5% to $190.03 per ton. The same for Cement volume is pegged at 0.6 million tons, down 44% from a year ago.
We expect the Building Material segment revenues, which comprised 95.3% of total revenues in the first quarter of 2024, to grow 6.3% year over year to $1.85 billion. Our expectation for gross profit for the Building Material unit is pegged at $618 million versus $536.1 million reported a year ago.
Our model suggests Magnesia Specialties revenues are likely to increase 1.3% year over year to $81.5 million. We project gross profit for the Magnesia Specialties unit at $28.5 million versus $27.7 million reported a year ago.
However, inflation, higher liquid asphalt and diesel fuel costs, a rise in transportation and insurance costs, as well as labor costs, may have put pressure on the bottom line in the second quarter.
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.
Currently, MLM has an Earnings ESP of -4.46% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Peer Release
Vulcan Materials Company (VMC - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. On a year-over-year basis, earnings increased, but revenues declined due to lower Aggregate shipments.
Vulcan now anticipates adjusted EBITDA in the range of $2.00-$2.15 billion, down from the prior projection of $2.15-$2.30 billion. This indicates a 3.2% improvement from 2023 levels, considering the mid-point of the guidance. Net earnings are now expected to be in the range of $0.95-$1.07 billion (down from the prior projection of $1.07-$1.19) versus $933 million in the prior year.
Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Dycom Industries (DY - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DY’s earnings for the to-be-reported quarter are expected to increase 7.4%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 30.2%.
Aspen Aerogels, Inc. (ASPN - Free Report) has an Earnings ESP of +9.38% and carries a Zacks Rank #3.
ASPN’s earnings topped the consensus mark in all the last four quarters, with the average being 68.2%. Earnings for the to-be-reported quarter are expected to grow 122.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.