Martin Marietta's (MLM) Q3 Earnings Beat, 2018 Guidance Down
Zacks Investment Research | Nov 05, 2018 10:52PM ET
Martin Marietta Materials, Inc. (NYSE:MLM) reported third-quarter 2018 results, wherein earnings as well as revenues surpassed the Zacks Consensus Estimate and also improved year over year, given higher shipments, pricing improvements and benefits from growth initiatives owing to strong underlying demand and increased public-sector activity.
Adjusted earnings per share of $2.85 beat the Zacks Consensus Estimate of $2.64 by 8%. Earnings also increased 19.2% from the prior-year quarter.
Total revenues of $1,219.6 million surpassed the consensus mark of $1,125 million and also increased 12.1% year over year. Product and services revenues amounted to $1,142.2 million compared with $1,022.5 million a year ago. Freight revenues totaled $77.4 million, up from $65.2 million in the year-earlier period.
Segment Discussion
The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines.
The segment’s total revenues were up 11.9% to $1,146.1 million. Aggregates total revenues jumped 16.5% to $687.8 million. Ready Mixed Concrete total revenues grew to $254.7 million from $240.2 million a year ago. Cement revenues improved to $98.2 million from $88.5 million in the year-ago quarter. However, Asphalt and paving product lines revenues decreased to $100 million from $111 million a year ago.
Meanwhile, Heritage volume and pricing grew 3.8% and 2.9%, respectively, in the quarter.
Geographically, West Groups’ aggregate shipments decreased slightly. The Southeast Group heritage operation reported a 11.9% increase in volumes, given robust construction activity in North Georgia and improving long-haul shipments from Florida distribution yards. Moreover, Mid-America Group heritage operations’ shipment grew 5.4% owing to various large public and private construction projects in North Carolina, along with windfarm activity in Iowa.
The Magnesia Specialties segment — which includes magnesium oxide, magnesium hydroxide and dolomite lime products — reported total revenues of $68.4 million, up 14.2% year over year. The upside was driven by growth in both chemicals and lime businesses.
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
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