Eagle Materials Q3 Earnings & Revenues Miss, Adjusted EBITDA Down

Eagle Materials Inc. EXP reported dismal third-quarter fiscal 2025 (ended Dec. 31, 2024) results, wherein adjusted earnings and revenues missed the respective Zacks Consensus Estimate and declined year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarter’s performance reflects lower sales volume in the company’s Heavy Materials segment. The decline was due to the adverse weather situation, primarily in the Midwest and Great Plains markets during November. Also, increased Cement maintenance costs marred the bottom-line growth.Although increased contributions from the Light Materials segment and favorable gross sales prices supported the results to some extent, dismal sales trends in the Heavy Materials segment overshadowed the growth during the quarter.Inside EXP’s Q3 HeadlinesAdjusted earnings of $3.59 per share missed the Zacks Consensus Estimate of $4.00 by 10.3%. In the last year quarter, the company reported adjusted earnings per share (EPS) of $3.72.Total revenues of $558 million also lagged the consensus mark of $580 million by 3.8% and inched down 0.1% year over year.Eagle Materials Inc Price, Consensus and EPS Surprise Eagle Materials Inc price-consensus-eps-surprise-chart | Eagle Materials Inc QuoteThe company reported a gross profit of $177.8 million, down from $180.6 million reported in the last year quarter. The downtrend was primarily due to higher operating costs and lower sales volume, which were partially offset by higher gross sales prices. Gross margin remained at par year over year at 32%.Adjusted EBITDA was $208.8 million compared with $218.6 million reported a year ago.Eagle Materials’ Segments in DetailHeavy Materials: This segment’s revenues (including Joint Venture & Intersegment revenues) declined year over year by 4% to $351.8 million. The results reflect lower sales volume partially offset by higher sales prices.This segment’s operating earnings declined 20% year over year to $85.4 million.Light Materials: Segmental revenues increased year over year to $241.7 million from $226.9 million. The results reflect lower sales volume partially offset by higher sales prices.This segment’s operating earnings increased to $97.4 million from $82.6 million reported a year ago.EXP’s FinancialsAs of Dec. 31, 2024, Eagle Materials’ cash and cash equivalents were $31.2 million, down from $34.9 million in fiscal 2024-end. Long-term debt at the quarter end increased to $85.6 million from $71 million at the fiscal 2024 end.During the quarter, the company repurchased approximately 195,000 shares for a total of $55 million.EXP’s Zacks Rank & Recent Construction ReleasesEagle Materials currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Otis Worldwide Corporation OTIS has reported mixed results in the fourth quarter of 2024, wherein adjusted earnings missed the Zacks Consensus Estimate while net sales topped the same. This is the company’s second consecutive earnings miss, after beating expectations 18 straight times in the trailing 19 quarters.The quarterly results reflect year-over-year growth in contributions from the Service segment, driven by increased trends in organic maintenance and repair sales and organic modernization sales. On the other hand, the soft sales trend in the New Equipment segment due to declines in China somewhat hindered the growth. Moving forward into 2025, OTIS aims to continue focusing on innovation and implementing other strategic initiatives to improve its growth momentum along with ensuring shareholder value and operational efficiency.D.R. Horton, Inc. DHI reported first-quarter fiscal 2025 (ended Dec. 31, 2024) results, with earnings and revenues beating Zacks Consensus Estimate but decreasing on a year-over-year basis. Despite rising home inventories, the supply of affordable homes remains constrained while favorable demographics continue to drive housing demand.To address affordability challenges and stimulate sales, the company leveraged incentives such as mortgage rate buydowns. Additionally, D.R. Horton focused on offering smaller, affordable floor plans to align with the needs of cost-conscious homebuyers. DHI expects consolidated 2024 revenues to be in the range of $36-$37.5 billion compared with $36.8 billion in fiscal 2023. Homes closed are anticipated to be within 90,000-92,000 units.KB Home KBH reported impressive fourth-quarter fiscal 2024 results, wherein both revenues and earnings surpassed expectations. On a year-over-year basis, both metrics increased, highlighting its resilience in a fluctuating housing market.KBH’s results underscore the effectiveness of its strategy, driven by faster build times and a strong appetite for homeownership despite mortgage rate pressures. However, challenges such as mortgage rate headwinds and potential regulatory shifts could temper the pace of growth. While challenges remain, its strong order book and expanded community count suggest a solid growth trajectory for 2025.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report Eagle Materials Inc (EXP): Free Stock Analysis Report Otis Worldwide Corporation (OTIS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks