Martin Marietta Materials Stock Gains After Beating Q3 Estimates, Raised FY21 outlook

  • Martin Marietta Materials, Inc. MLM reported third-quarter FY21 revenue growth of 17.9% year-over-year to $1.56 billion, beating the consensus of $1.41 billion.
  • Total revenues comprised $1.46 billion in Products and services revenues and $94.6 million in Freight revenues.
  • Building Materials business revenue was $1.39 billion (+17.3% Y/Y), and the product gross profit was $413.1 million (+7.9%).
  • Q3 aggregates shipments, including shipments from acquired operations, grew 10.2%. Aggregates product gross margin decreased 220 bps to 34.2%.
  • Cement product gross margin declined 250 bps to 37.7% as higher energy and raw materials costs outpaced shipment and pricing gains.
  • Ready-mixed concrete shipments increased 23.2%, or 20.5% Y/Y organically. Total asphalt shipments increased 115.9% Y/Y.
  • On an organic basis, aggregates shipments increased 6% while pricing increased 2.2%.
  • Adjusted EPS decreased to $4.25 compared to $4.71 in 3Q20, beating the consensus of $4.24.
  • The adjusted gross margin contracted by 172 bps to 28.9%. The adjusted operating income decreased 7% Y/Y to $372.4 million, and the margin contracted by 640 bps to 23.9%.
  • Adjusted EBITDA was $490 million (-2.3% Y/Y), and margin contracted by 650 bps to 31.5%.
  • Martin Marietta Materials generated cash from operating activities year-to-date of $780.3 million, compared to $684 million a year ago. It held $2.4 billion of cash and equivalents as of September 30, 2021.
  • The company's preliminary view of 2022 anticipates organic aggregates shipments to increase in the low-to-mid-single-digits as third-party labor and logistics challenges continue to impact an otherwise robust product demand environment.
  • FY21 Outlook: The company expects Products and services revenues of $4.955 billion - $5.05 billion (prior view $4.705 billion-$4.85 billion), adjusted gross profit of $1.35 billion-$1.4 billion (previous $1.325 billion - $1.395 billion).
  • It expects Adjusted EBITDA of $1.5 billion-$1.55 billion (prior $1.465 billion - $1.535 billion).
  • Price Action: MLM shares are trading higher by 5.10% at $410.34 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!