Martin Marietta Materials' Q4 Earnings Outlook Analyzed

Martin Marietta's earnings announcements are approaching, sparking investor discussion. The expected profit of $4.61 per share reveals a slight decrease but hints at recovery in fiscal 2025 with a projected EPS increase of 16.1%.

Date: 20-01-2025

AI Rating: 5

EPS Considerations: Analysts have estimated that Martin Marietta Materials (MLM) will report an earnings per share (EPS) of $4.61 for the upcoming fourth quarter, reflecting a marginal decrease from the previous year's EPS of $4.63. For the full fiscal year, EPS is projected to decline to $17.57 from $19.32 in fiscal 2023, which is a notable drop of 9.1%. However, a significant rebound is anticipated for fiscal 2025, with EPS expected to rise 16.1% to $20.39.

Revenue Insights: The company's revenue for the third quarter was reported at $1.89 billion, which was below Wall Street's expected $1.92 billion. Looking forward, management expects total revenue for the fiscal year to range between $6.5 billion and $6.7 billion.

Market Performance: Over the past 52 weeks, MLM stock has increased by 10%, which is underperformance compared to the S&P 500's gains of 26.5%. However, it has outperformed the Materials Select Sector SPDR Fund (XLB), which only delivered 7.9% gains during the same period.

Impact of External Factors: The stock's underperformance has been attributed to severe weather events, which disrupted product shipments and impacted distribution capabilities. This suggests that external risks could continue to affect the stock's performance.

Analyst Sentiment: Currently, the consensus among analysts is positive with a “Strong Buy” rating for MLM. Of the 17 analysts covering the stock, 13 recommend a “Strong Buy,” indicative of bullish sentiment within the market. The average price target of $656.42 implies a potential upside of 21%, which could further influence price movements for investors.

Stocks: MLM SPX XLB