Eagle Materials Q3 revenue slightly misses estimates

Overview

• Construction materials firm's fiscal Q3 revenue slightly missed analyst expectations

• Adjusted EBITDA for fiscal Q3 was $190.1 mln

• Company repurchased 648,000 shares for $142.6 mln

Outlook

• Eagle Materials highlights strong demand for Heavy construction products due to infrastructure spending

• Company is investing in modernizing facilities to improve efficiency and cost structure

• Eagle Materials emphasizes financial flexibility with recent debt issuance and share repurchases

Result Drivers

• HEAVY MATERIALS GROWTH - Revenue in Heavy Materials segment rose 11% due to higher cement and aggregates sales volume and contribution from a new aggregates business

• LIGHT MATERIALS DECLINE - Revenue in Light Materials segment fell 16% due to lower sales volumes and prices in gypsum wallboard and recycled paperboard

• FINANCIAL POSITION - Issued $750 mln in senior notes to extend debt maturity and increase liquidity, repaid bank credit facility

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "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 $233.50, about 7.1% above its January 28 closing price of $217.92

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

Press Release: ID:nBwbkZRKPa

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