Eagle Materials, a US producer of cement, concrete, aggregates and gypsum wallboard reported Q3 results after hours last night that came in behind forecasts both on the top line and in terms of earnings per share. The company reported revenue for the quarter of $228.8 million (est.$236.8 million) while earnings per share amounted to 63c (est. 73c). <p>
The company benefitted from improving volumes across all business lines, also aided by the contribution of acquisitions while prices also increased across business segments. For the cement division, operating earnings increased to $26.0 million (+57% YoY) as a result of higher prices and volumes achieved by Eagle Materials. Concrete and Aggregates reported a loss of $3.7 million in the quarter, adversely impacted by $2.1 million of plant start up costs and $.5 million related to litigation. Gypsum Wallboard segmental earnings were strongly higher, with operating earnings amounting to $37.4 million (+51% YoY), reflecting increased pricing (+19% YoY) and higher volumes (+13% YoY) for the product category. <p>
Overall, while the company has experienced a strong movement higher in volumes and in prices, expectations remain high for Eagle Materials and the company has not recorded declines in its share price of the same magnitude as other companies in the sector. Shares traded lower by 1.3% after hours.
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.