Eagle Materials (EXP) Misses Q4 Earnings and Revenue Estimates

Eagle Materials (EXP) came out with quarterly earnings of $2.24 per share, missing the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.79 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -17.65%. A quarter ago, it was expected that this maker of gypsum wallboard and cement would post earnings of $3.56 per share when it actually produced earnings of $3.72, delivering a surprise of 4.49%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Eagle Materials, which belongs to the Zacks Building Products - Concrete and Aggregates industry, posted revenues of $476.71 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 0.40%. This compares to year-ago revenues of $470.13 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Eagle Materials shares have added about 26.7% since the beginning of the year versus the S&P 500's gain of 11.3%.

What's Next for Eagle Materials?

While Eagle Materials has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Eagle Materials: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.90 on $648.68 million in revenues for the coming quarter and $16.17 on $2.43 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Concrete and Aggregates is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Construction sector, Thor Industries (THO), has yet to report results for the quarter ended April 2024.

This recreational vehicle maker is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of -16.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Thor Industries' revenues are expected to be $2.75 billion, down 6.2% from the year-ago quarter.

Buy 5 Stocks BEFORE Election Day

Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).

Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.

They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S. 

Don’t Wait. Download FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eagle Materials Inc (EXP) : Free Stock Analysis Report

Thor Industries, Inc. (THO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.