Raleigh, North Carolina-based Martin Marietta Materials, Inc. (MLM), a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry. With a market cap of $33.2 billion, the company also manufactures and markets magnesia-based products, including heat-resistant refractory products for the steel industry, chemical products for industrial and environmental uses, and dolomitic lime. The leading supplier of aggregates and heavy building materials is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect MLM to report a profit of $4.61 per share on a diluted basis, down marginally from $4.63 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect MLM to report EPS of $17.57, down 9.1% from $19.32 in fiscal 2023. However, its EPS is expected to rise 16.1% year over year to $20.39 in fiscal 2025.
MLM stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares up 10% during this period. However, it outperformed the Materials Select Sector SPDR Fund’s (XLB) 7.9% gains over the same time frame.
MLM's underperformance was largely driven by severe weather events, including hurricanes, which caused disruptions in product shipments and hindered the company's distribution capabilities.
On Oct. 30, MLM shares closed up more than 3% after reporting its Q3 results. Its EPS of $5.91 missed Wall Street expectations of $6.41. The company’s revenue was $1.89 billion, falling short of Wall Street forecasts of $1.92 billion. MLM expects full-year revenue to be between $6.5 billion and $6.7 billion.
Analysts’ consensus opinion on MLM stock is bullish, with a “Strong Buy” rating overall. Out of 17 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three give a “Hold.” MLM’s average analyst price target is $656.42, indicating a potential upside of 21% from the current levels.
