Raleigh, North Carolina-based Martin Marietta Materials, Inc. (MLM) is a natural resource-based building materials company that supplies aggregates and building materials to the construction industry. With a market cap of $33.6 billion, Martin Marietta’s operations span the U.S. and internationally. It is expected to announce its Q2 earnings on Thursday, Jul. 25.
Ahead of the event, analysts expect Martin Marietta to report a profit of $6.21 per share, up 10.9% from $5.60 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter declined 10.7% year over year to $1.93, but it exceeded the consensus estimates by 2.7%.
Looking ahead to fiscal 2024, analysts expect Martin Marietta to report an EPS of $23.03, up 19.2% from $19.32 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 4.6% year over year to $24.09.
MLM stock is up 9.3% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.1% gains but outperforming the S&P 500 Materials Sector SPDR’s (XLB) 3.4% returns during the same time frame.
MLM stock fell 2.6% after the release of its Q1 2024 results. It reported a 7.6% decline in sales and a 10.2% decline in gross profit. The prevailing economic conditions have impacted Martin Marietta’s volumes and put pressure on pricing. Despite the fall in gross profit, the company reported a massive increase in earnings from operations due to a $1.3 billion gain on the divestiture of the South Texas cement business. This will help the company invest in new projects and navigate challenging economic conditions.
The consensus opinion on Martin Marietta stock is bullish, with a “Moderate Buy” rating overall. Out of the 16 analysts covering the stock, 10 recommend a “Strong Buy,” two advise a “Moderate Buy,” and four suggest a “Hold” rating.
The average price target for Martin Marietta is $640.19, indicating a potential upside of 17.4% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
