Eagle Materials Inc. (NYSE:EXP) Quarterly Earnings Preview

• Eagle Materials Inc. (NYSE:EXP) reported a record revenue of $2.3 billion for the fiscal year 2025 but fell short of earnings expectations with an EPS of $2.08.
• The company's quarterly revenue was $470.18 million, missing the Zacks Consensus Estimate, and indicating a pattern of underperformance in surpassing consensus EPS estimates over the past four quarters.
• EXP's financial metrics reveal a P/E ratio of approximately 16.16, a moderate debt-to-equity ratio of 0.70, and a slight decrease in net earnings to $463.4 million for the year.

Eagle Materials Inc. (NYSE:EXP) operates in the building products sector, focusing on concrete and aggregates. The company recently reported its earnings for the fiscal year 2025 and the fourth quarter ending March 31, 2025. Despite achieving a record revenue of $2.3 billion for the full fiscal year, the company faced challenges in meeting earnings expectations.

On May 20, 2025, EXP reported earnings per share (EPS) of $2.08, which fell short of the Zacks Consensus Estimate of $2.34. This represents an 11.11% negative surprise. The EPS also decreased from $2.24 in the same quarter last year. Over the past four quarters, EXP has only surpassed consensus EPS estimates once, indicating a pattern of underperformance.

The company's revenue for the quarter was $470.18 million, missing the Zacks Consensus Estimate of $622.11 million by 1.59%. This is a slight decline from the $476.71 million reported a year ago. Despite the quarterly shortfall, EXP achieved a record revenue of $2.3 billion for the full fiscal year, marking a slight increase from the previous year.

EXP's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 16.16, indicating how the market values its earnings. The price-to-sales ratio is about 3.38, reflecting its market value relative to revenue. The enterprise value to sales ratio is around 3.82, showing the total valuation compared to sales.

The company's financial health is further highlighted by its debt-to-equity ratio of approximately 0.70, indicating a moderate level of debt. The current ratio of about 2.76 suggests that EXP can cover its short-term liabilities with its short-term assets. Despite these financial metrics, the company reported a 3% decrease in net earnings for the year, totaling $463.4 million.

Eagle Materials Inc. (NYSE:EXP), a key player in the building products, concrete, and aggregates industry, recently disclosed its financial outcomes for the quarter ending March 2024. The company, known for its significant contributions to construction and building materials, faced a challenging quarter, as evidenced by its earnings per share (EPS) and revenue figures. These results are particularly noteworthy as they provide insights into the company's performance against Wall Street's expectations and its financial health over the past year.

For the fiscal fourth quarter, EXP reported earnings per share of $2.24, which did not meet the anticipated $2.72 set by analysts. This represents a notable decrease from the previous year's EPS of $2.79, marking a -17.65% surprise against expectations. Such a decline in EPS is a critical indicator of the company's profitability challenges during the quarter, despite having outperformed earnings forecasts in the preceding quarter with a positive surprise of 4.49%.

On the revenue front, Eagle Materials reported approximately $476.7 million, slightly missing the Zacks consensus estimate by 0.40%. This figure, however, represents a modest year-over-year growth of 1.4% from $470.13 million, showcasing the company's ability to increase its revenue despite the market's tough conditions. It's important to note that this is only the second time in the last four quarters that the company has not surpassed consensus revenue estimates, highlighting the variability in its financial performance.

For the fiscal year 2024, Eagle Materials announced a record revenue of $2.3 billion, a 5% increase from the previous year, and net earnings of $477.6 million, up by 3%. These figures, along with a 9% rise in diluted earnings per share to $13.61 and a 7% improvement in adjusted EBITDA to $834.5 million, underscore the company's strong performance over the year. The repurchase of 1.9 million shares, investing $343 million back into the company, further demonstrates Eagle Materials' commitment to enhancing shareholder value.

In terms of valuation metrics, EXP's price-to-earnings (P/E) ratio stands at approximately 17.28, indicating the market's valuation of its earnings. The price-to-sales (P/S) ratio of about 3.69, along with the enterprise value-to-sales (EV/Sales) ratio of roughly 4.17, reflects the company's market valuation in relation to its sales. Additionally, the enterprise value to operating cash flow (EV/OCF) ratio of approximately 16.74 and an earnings yield of about 5.79% offer insights into the company's profitability and valuation from an investor's perspective. The debt-to-equity (D/E) ratio of around 0.84 and a current ratio of approximately 2.62 suggest the company's financial leverage and liquidity status, respectively. These metrics are crucial for investors to understand Eagle Materials' financial health and market position.

Eagle Materials Inc. (NYSE:EXP), a leading producer of construction materials including gypsum wallboard and cement, is set to announce its quarterly earnings on Tuesday, May 21, 2024, before the market opens. This announcement is highly anticipated by investors and analysts alike, as it provides a snapshot of the company's financial health and operational performance. Wall Street's expectations are set with an earnings per share (EPS) forecast of $2.72 and projected revenue of approximately $484.69 million for the quarter.

The company's financial outlook, as highlighted by Zacks Investment Research, suggests a slight decline in EPS by 2.5% year-over-year, with an adjusted revenue expectation of about $478.6 million, indicating a modest increase of 1.8% from the previous year. These projections have remained stable over the past 30 days, signaling a consensus among analysts about the company's performance for the quarter ending March 2024. This stability in earnings and revenue estimates underscores the importance of monitoring changes in these forecasts, as they can significantly influence investor reactions and the stock's short-term price movements.

Eagle Materials has a history of surpassing consensus earnings estimates, with an average earnings surprise of 6.5% over the last four quarters. This track record of exceeding expectations has contributed to the company's reputation for reliability in its financial reporting. However, the slight downward revision of the EPS estimate to $2.72 from $2.77 over the past month reflects a cautious outlook from analysts, despite the company's past performance.

The anticipated financial results are believed to be driven by improved residential and infrastructural activities, which could have provided a boost to Eagle Materials' performance in the fiscal fourth quarter. Nonetheless, concerns about lower pricing for Wallboard and Paperboard remain, potentially impacting the company's financials. As the earnings release date approaches, investors and stakeholders will be closely watching for any deviations from these projections, as the company's ability to meet or exceed analyst expectations could significantly influence its stock price in the near term.

Eagle Materials' valuation metrics, such as the price-to-earnings (P/E) ratio of approximately 17.64 and the price-to-sales (P/S) ratio of about 3.92, offer insights into how much investors are willing to pay for each dollar of earnings and sales, respectively. These ratios, along with the enterprise value to sales (EV/Sales) ratio of roughly 4.37 and the enterprise value to operating cash flow (EV/OCF) ratio of approximately 17.51, highlight the company's valuation in relation to its sales and operating cash flow after adjusting for debt. With an earnings yield of about 5.67% and a debt-to-equity (D/E) ratio of around 0.78, Eagle Materials demonstrates its profitability from an investor's perspective and its financial leverage in terms of debt used to finance its assets. The current ratio of approximately 2.61 further indicates the company's ability to cover its short-term liabilities with its short-term assets.

Eagle Materials (NYSE:EXP) reported its Q4 results, with EPS coming in at $1.90, beating the Street estimate of $1.77. Revenue was $413.1 million, compared to the Street estimate of $400.62 million. The company also increased its repurchase authorization to 10.3 million (25% of outstanding share count).

Despite broader concerns around energy cost inflation and a decelerating/declining housing backdrop, the company continued to deliver strong pricing gains and margin expansion across both its Heavy and Light Materials segments.

Moreover, the company has enacted mid-year price increases across the majority of its business lines to further offset any inflationary pressures (particularly in energy/freight), which should embed some margin resilience in the upcoming fiscal year.

Eagle Materials (NYSE:EXP) reported its Q4 results, with EPS coming in at $1.90, beating the Street estimate of $1.77. Revenue was $413.1 million, compared to the Street estimate of $400.62 million. The company also increased its repurchase authorization to 10.3 million (25% of outstanding share count).

Despite broader concerns around energy cost inflation and a decelerating/declining housing backdrop, the company continued to deliver strong pricing gains and margin expansion across both its Heavy and Light Materials segments.

Moreover, the company has enacted mid-year price increases across the majority of its business lines to further offset any inflationary pressures (particularly in energy/freight), which should embed some margin resilience in the upcoming fiscal year.

Eagle Materials Inc. (NYSE:EXP) reported its Q3 results, with EPS coming in at $2.53 (3% above the Street estimate) and revenue and EBIT of $463 million and $137 million, respectively, both in line with the consensus estimates.

More importantly, management made a few comments during the earnings call, which analysts at Berenberg Bank find encouraging. First, the company is ramping production of Portland Limestone Cement (PLC), which not only reduces its carbon footprint, but should also add around 8-12% to cement capacity over the coming years (depending on the plant). Secondly, management appeared confident that there was further upside potential for the Wallboard operating margin despite investor concerns that the company may have reached a peak at around 37-38%.