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Inclement Weather to Hurt Martin Marietta's (MLM) Q1 Earnings
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Martin Marietta Materials, Inc. (MLM - Free Report) is expected to report first-quarter 2018 results on May 1, before markets open. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 32.4%.
However, Martin Marietta has a dismal history, at least in terms of bottom-line performance. The company surpassed expectations in only three of the last 10 quarters. Well, the obvious question that arises is whether Martin Marietta will be able to beat earnings in the quarter to be reported.
Let us delve into the factors that are likely to affect Martin Marietta’s first-quarter 2018 earnings.
Adverse weather conditions in many markets might mar Martin Marietta’s results in the to-be-reported quarter. Weather-related risks have been affecting the company’s performance, thanks to the exterior nature of the business, in spite of improving economic conditions, cost management and enhanced operational efficiency. The first and fourth quarters are most affected by winter. Hurricanes in the Atlantic Ocean and Gulf Coast are prevalent during these periods.
Nevertheless, string of acquisitions, divestitures and an uptick in private construction activity are expected to provide some cushion to revenues and earnings. Sustained growth in construction activity drives demand for aggregates and cement businesses. This can be expected to boost results to some extent in the to-be-reported quarter.
Overall, for the first quarter, the current Zacks Consensus Estimate is 41 cents, reflecting year-over-year decline of 38.8%. Analysts polled by Zacks expect revenues of $805.1 million, indicating a rise of 1.7% from the year-ago quarter.
What the Zacks Model Unveils
Our proven model does not show that Martin Marietta is likely to beat estimates this quarter as the stock has does not have the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.
Martin Marietta has an Earnings ESP of -13.04% and a Zacks Rank #3. This makes us doubtful of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Martin Marietta Materials, Inc. Price and EPS Surprise
PulteGroup Inc. (PHM - Free Report) reported impressive first-quarter 2018 results, with earnings and revenues beating the Zacks Consensus Estimate.
NVR, Inc. (NVR - Free Report) also reported solid first-quarter 2018 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Lennar Corporation (LEN - Free Report) surpassed earnings and revenues expectations in the first quarter of fiscal 2018. Its top and bottom line grew considerably on higher orders along with improved gross margins and SG&A expenses.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Inclement Weather to Hurt Martin Marietta's (MLM) Q1 Earnings
Martin Marietta Materials, Inc. (MLM - Free Report) is expected to report first-quarter 2018 results on May 1, before markets open. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 32.4%.
However, Martin Marietta has a dismal history, at least in terms of bottom-line performance. The company surpassed expectations in only three of the last 10 quarters. Well, the obvious question that arises is whether Martin Marietta will be able to beat earnings in the quarter to be reported.
Let us delve into the factors that are likely to affect Martin Marietta’s first-quarter 2018 earnings.
Adverse weather conditions in many markets might mar Martin Marietta’s results in the to-be-reported quarter. Weather-related risks have been affecting the company’s performance, thanks to the exterior nature of the business, in spite of improving economic conditions, cost management and enhanced operational efficiency. The first and fourth quarters are most affected by winter. Hurricanes in the Atlantic Ocean and Gulf Coast are prevalent during these periods.
Nevertheless, string of acquisitions, divestitures and an uptick in private construction activity are expected to provide some cushion to revenues and earnings. Sustained growth in construction activity drives demand for aggregates and cement businesses. This can be expected to boost results to some extent in the to-be-reported quarter.
Overall, for the first quarter, the current Zacks Consensus Estimate is 41 cents, reflecting year-over-year decline of 38.8%. Analysts polled by Zacks expect revenues of $805.1 million, indicating a rise of 1.7% from the year-ago quarter.
What the Zacks Model Unveils
Our proven model does not show that Martin Marietta is likely to beat estimates this quarter as the stock has does not have the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.
Martin Marietta has an Earnings ESP of -13.04% and a Zacks Rank #3. This makes us doubtful of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta Materials, Inc. Price and EPS Surprise | Martin Marietta Materials, Inc. Quote
Peer Releases
PulteGroup Inc. (PHM - Free Report) reported impressive first-quarter 2018 results, with earnings and revenues beating the Zacks Consensus Estimate.
NVR, Inc. (NVR - Free Report) also reported solid first-quarter 2018 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Lennar Corporation (LEN - Free Report) surpassed earnings and revenues expectations in the first quarter of fiscal 2018. Its top and bottom line grew considerably on higher orders along with improved gross margins and SG&A expenses.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>