Eagle Materials Q1 revenue beats estimates on cement volume growth

Overview

• U.S. construction materials maker's fiscal Q1 revenue rose 3%, beating analyst expectations

• Net earnings and adjusted EBITDA declined due to higher costs and equipment failure at Mountain Cement

• Company repurchased 406,500 shares for about $84 mln in the quarter

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• CEMENT VOLUME GROWTH - Cement sales volume increased 8%, driven by public construction and large private non-residential projects

• EQUIPMENT FAILURE IMPACT - Unexpected equipment failure at Mountain Cement facility reduced earnings by about $6 mln

• HIGHER DELIVERY COSTS - Delivery costs rose across Cement and Wallboard businesses, mainly due to elevated diesel prices

Company press release: ID:nBw1nhtVha

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 1 "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 $232.00, about 4.5% above its July 28 closing price of $222.05

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)