Martin Marietta Materials Earnings: Here’s Why Investors Like These Results
Martin Marietta Materials Inc. (NYSE:MLM) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.5%.
Martin Marietta Materials Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.61 in the quarter versus EPS of $-0.45 in the year-earlier quarter.
Revenue: Decreased 2.28% to $385 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Martin Marietta Materials Inc. reported adjusted EPS loss of $0.61 per share. By that measure, the company missed the mean analyst estimate of $-0.35. It missed the average revenue estimate of $397.62 million.
Quoting Management: Ward Nye, President and CEO of Martin Marietta Materials, stated: “Due to a more normal winter weather pattern, and in fact, more severe and extended in some parts of the country, aggregates shipments declined 8.8% compared with the prior-year quarter. The prior year benefitted from an unseasonably warm winter, accelerating the start of construction projects in many of our markets into the first quarter. The decline in aggregates volumes directly correlated to the gross profit reduction. Notably, however, our Aggregates business continues to experience pricing growth in each reportable segment and in each product line. This trend bodes well for the future performance of this business as shipments pick up during the remainder of the year. Our Specialty Products business benefitted from the new lime kiln completed in the fourth quarter of 2012 and established new records for net sales and gross profit.”
Key Stats (on next page)…