The Gory Details of Martin Marietta Materials's Earnings Miss

Seth Jayson, The Motley Fool
Updated

Martin Marietta Materials (NYS: MLM) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Martin Marietta Materials missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped. GAAP earnings per share grew.


Gross margins grew, operating margins shrank, net margins grew.

Revenue details
 Martin Marietta Materials reported revenue of $562.7 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $593.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.90. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.14 per share. Non-GAAP EPS of $0.90 for Q2 were 4.3% lower than the prior-year quarter's $0.94 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.89 for Q2 were 11% higher than the prior-year quarter's $0.80 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 19.0%, 30 basis points better than the prior-year quarter. Operating margin was 12.3%, 30 basis points worse than the prior-year quarter. Net margin was 7.3%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $666.2 million. On the bottom line, the average EPS estimate is $1.62.

Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is $2.89.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 153 members out of 178 rating the stock outperform, and 25 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Martin Marietta Materials a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Martin Marietta Materials is outperform, with an average price target of $111.50.

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The article The Gory Details of Martin Marietta Materials's Earnings Miss originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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