United States Lime & Minerals Q2 revenue rises on higher construction, steel demand

Overview

• US lime and limestone producer's Q2 revenue rose 8.3% yr/yr on higher construction and steel demand

• Q2 net income increased 11.9% to $34.5 mln

• Company maintained quarterly dividend at $0.06 per share

Outlook

• Company anticipates data center projects will continue to support strong construction demand

• United States Lime Minerals expects new kiln at Texas facility to come online this summer

Result Drivers

• CONSTRUCTION AND STEEL DEMAND - Co said increased sales volumes were mainly due to higher demand from construction and steel customers

• HIGHER FUEL AND TRANSPORTATION COSTS - Gross profit gains were partially offset by increased fuel and transportation expenses

• LOWER SGA EXPENSES - SGA expenses declined due to decreased stock-based compensation

Company press release: ID:nGNX9DxvHr

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for United States Lime Minerals Inc is $130.00, about 14.3% above its July 28 closing price of $113.74

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• July 29 - Vulcan Materials beats quarterly profit estimates on strong construction materials demand

• July 29 - Eagle Materials Q1 revenue beats estimates on cement volume growth

• July 27 - Nucor Q2 revenue rises on steel mills segment growth

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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.)