Hot Stock to watch: Eagle Materials, Inc. (NYSE: EXP)

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Eagle Materials, Inc. (NYSE: EXP) stock rose over 2% on 16th May, 2019 (as of 12:18 pm GMT-4; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19.

EXP in the fourth quarter of FY 19 has reported the adjusted earnings per share of 87 cents, beating the analysts’ estimates for the adjusted earnings per share of 85 cents, according to Zacks Consensus Estimate. The company had reported flat adjusted revenue growth to $284.70 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 0.39%.

Revenue in the Heavy Materials sector, fell by 1% to $795.5 million in fiscal year 2019. Heavy Materials operating earnings for the FY 19 fell 10% to $177.6 million. The decline in the Heavy Materials revenue and operating earnings was on the back of the unusually wet weather throughout the year, which hampered sales volume, and by increased maintenance costs partially offset by improved Cement and Concrete average net sales prices.

Revenue from Cement, including joint venture and intersegment revenue, grew by 1% to $656.8 million for the full FY 19. Fiscal 2019 operating earnings from Cement were $164.8 million, a decline of 8%, reflecting increased maintenance costs partially offset by improved pricing.

Cement revenue for the fourth quarter, including joint venture and intersegment revenue, fell by 2% to $113.1 million. Operating earnings from Cement for the fourth quarter were $22.7 million, which is a decline of 8% versus the same quarter a year ago. The revenue and earnings decline was caused primarily due to the reduced sales volume due to persistently wet weather in many of the markets and was partially offset by improved average net cement sales prices. Cement sales volume for the fourth quarter fell by 2% to 928,000 tons. The average net sales price for the quarter improved slightly to $109.15 per ton. Concrete and Aggregates revenue for the fourth quarter of 2019 fell by 7% to $28.5 million. Fourth quarter operating earnings were down 20% to $2.2 million, due to lower sales volume partially offset by improved concrete pricing. The primary concrete and aggregates markets had experienced heavier rainfall than typical during the quarter, which hampered the ability to move product. Eagle’s Oil and Gas Proppants segment reported fourth quarter revenue of $17.7 million, which fell by 43%, primarily due to a 41% decrease in average Frac Sand sales prices. Gypsum Wallboard and Paperboard revenue for the fourth quarter posted 13% increase to $154.4 million

For FY 20, EXP expects capital expenditures to range from $140 million to $155 million

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