Markets
MLM

Why Martin Marietta Materials, Inc. Shares Popped

Shares of building materials company were up 11.1% at 2:55 p.m. ET on Tuesday after its full-year outlook impressed Wall Street.

What: Shares of building materials company Martin Marietta Materials were up 11.1% at 2:55 p.m. ET on Tuesday after its full-year outlook impressed Wall Street.

So what: Martin Marietta shares have slumped in recent months on concerns over its exposure to a slowing economy, but positive full-year guidance suggests that those worries are a tad overblown. So while the company's Q4 results actually missed expectations -- adjusted EPS of $1.15 fell short of the consensus by $0.22 on a revenue decline of 1.4% -- better-than-expected aggregates volume and cement guidance for 2016 is forcing analysts to quickly recalibrate their growth estimates going forward.

Now what: Management now expects full-year 2016 EBITDA of $930 million-$980 million on revenue of $3.5 billion-$3.7 billion. "Our outlook for 2016 reflects growing underlying demand and strong pricing across our entire geographic footprint," said Chairman, President, and CEO Ward Nye. "We are well positioned, through our leading market positions and strong foundation, to capitalize on these opportunities and enhance long-term shareholder value." With the stock now up more than 20% from its 52-week lows and trading at a forward P/E of about 20, however, I'd wait for a bit of the excitement to fade before buying into that bullishness.

This iSecret stock could make this pop look tiny

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article Why Martin Marietta Materials, Inc. Shares Popped originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

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


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

In This Story

MLM

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More