Building products firm Eagle Materials's Q1 revenue beats estimates

Overview

• Eagle Materials fiscal Q1 revenue rises 4% to $634.7 mln, beating expectations

• Net earnings for fiscal Q1 fall 8% to $123.4 mln

• Co repurchased 358,000 shares for $79 mln

Outlook

• Eagle Materials expects to benefit from U.S. infrastructure renovation needs

• Company anticipates housing market recovery will improve its positioning

• Eagle Materials investing in plant modernization for long-term growth

Result Drivers

• MACROECONOMIC UNCERTAINTY - Co cites ongoing macroeconomic and policy uncertainty impacting results

• ADVERSE WEATHER - Adverse weather conditions across markets affected performance

• FACILITY INVESTMENTS - Investments in modernizing Mountain Cement and Duke Gypsum Wallboard plants aim to strengthen competitive position

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", 8 "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 $243.00, about 9.1% above its July 28 closing price of $220.92

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw3S4Gq3a