Here's What to Expect From Eagle Materials' (EXP) Q1 Earnings
Eagle Materials Inc. EXP is scheduled to report first-quarter fiscal 2024 (ended Jun 30) results on Jul 27, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 18.7% and revenues topped the same by 1.2%. On a year-over-year basis, earnings of this heavy construction materials and light building materials producer increased by a whopping 47% and revenues rose by 14%.
Eagle Materials’ earnings topped the consensus mark in all the last four quarters, the average surprise being 6.5%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has decreased to $3.54 per share from $3.57 over the past 30 days. The estimated figure indicates an increase of 25.5% from the year-ago level. The consensus mark for revenues is $605.2 million, suggesting 7.8% year-over-year growth.
Eagle Materials Inc Price and EPS Surprise
Eagle Materials Inc price-eps-surprise | Eagle Materials Inc Quote
Factors to Note
Improved demand trends and good pricing momentum are expected to have contributed to Eagle Materials’ fiscal first-quarter revenue growth. Given the solid momentum in the housing starts, the company is expected to have witnessed higher wallboard and cement volumes.
Additionally, higher non-residential construction activities and incremental federal funding from the enacted Infrastructure Investment and Jobs Act are likely to have acted as a tailwind for first-quarter fiscal 2024. Also, resilient pricing — given the growth in all product lines — is expected to have supported growth for EXP.
For the Heavy Materials sector (which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenues), the consensus mark for segment revenues (which accounted for 54.3% of total revenues in fiscal 2023) is currently pegged at $364 million, depicting an increase from $346.1 million a year ago.
Within the Heavy Materials umbrella, the consensus mark for Cement revenues is currently pegged at $299 million, indicating an increase from $252 million a year ago. Concrete and Aggregates’ revenues are currently pegged at $67 million, reflecting an increase from $62 million a year ago.
Meanwhile, the consensus mark for the Light Materials sector revenues (which accounted for 45.7% of total revenues in fiscal 2023) is currently pegged at $242 million, depicting a decrease from $247.9 million a year ago.
Within the Light Materials sector, the consensus mark for Gypsum Wallboard revenues is currently pegged at $214 million versus $216 million reported a year ago. Again, the consensus mark for Gypsum Paperboard revenues is currently pegged at $25.6 million versus $31.5 million reported a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Eagle Materials 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EXP has an Earnings ESP of -6.73% and carries a Zacks Rank #3.
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 on their respective quarters to be reported.
Boise Cascade Company BCC has an Earnings ESP of +2.36% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BCC’s earnings for the to-be-reported quarter are expected to decline 53.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 19%.
Owens Corning OC has an Earnings ESP of +2.10% and sports a Zacks Rank #1.
OC’s earnings topped the consensus mark in all the last four quarters, the average being 15.1%. Earnings for the to-be-reported quarter are expected to decrease 13.8% year over year.
AECOM ACM has an Earnings ESP of +1.05% and carries a Zacks Rank #2.
ACM’s earnings topped the consensus mark in all the last four quarters, the average being 4.8%. Earnings for the to-be-reported quarter are expected to increase 10.5% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
