NYSE$EXP

Eagle Materials Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Eagle Materials reported record third quarter results with EPS growth of 26%.

Eagle Materials Inc. reported record revenue of $511 million, a 10% increase, and record EPS of $3.20, a 26% increase, for the third quarter of fiscal 2023. The company's gross margins expanded by 110 bps to 31.0%, led by the Gypsum Wallboard business, which saw margins expand by 400 bps.

  • Record Revenue of $511 million, up 10%.
  • Record Net Earnings of $117 million, up 14%, and Net Earnings per share of $3.20, up 26%.
  • Adjusted EBITDA of $199 million, up 14%.
  • Repurchased 824,000 shares of Eagle’s common stock for $103 million.

Headline financials

Total Revenue

$511M

Previous: $463M+10.5%
EPS (adj)

$3.20

Previous: $2.53+26.5%
Concrete Avg Net Sales Price

$134.42

No prior period
Aggregates Avg Net Sales Price

$11.70

No prior period
Gypsum Wallboard Avg Price

$238.51

Previous: $191.41+24.6%
Paperboard Sales Volume

77.0K

Previous: 81.0K-4.9%
Paperboard Avg Net Sales Price

$594.93

Previous: $585.54+1.6%
Cement Avg Net Sales Price

$134.36

Previous: $118.44+13.4%
Gypsum Wallboard Volume

728.0M

Previous: 695.0M+4.7%
Capital Expenditures

-$61M

Previous: -$55.2M-10.4%
Free Cash Flow

$56.2M

Previous: $47.3M+18.9%
Net Income

$117M

Previous: $102M+14.3%
Operating Income

$170M

Previous: $147M+15.6%
Gross Profit

$159M

Previous: $139M+14.6%
Cash & Equivalents

$60.9M

Previous: $17.4M+250.4%
Total Assets

$2.73B

Previous: $2.56B+6.6%
Stock-Based Comp

$4.09M

Previous: $4.26M-4.1%

Revenue & EPS history

Eagle Materials · Revenue · Quarterly

$511M

Q3 2023+10.5%vs Q3 2022
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Eagle Materials · $539M total across 4 segments · Q3 2023

  • Cement (Wholly Owned)
    $249M-4.8%
  • Gypsum Wallboard
    $212M+29.6%
  • Concrete and Aggregates
    $55.2M+30.1%
  • Recycled Paperboard
    $23.3M-18.2%

Forward guidance

Eagle's heartland geographic footprint is well-positioned for long-term growth, supported by population-growth trends, shortages of residential units, and a multi-year federal highway bill further enhanced by state-level infrastructure spending. In the near term, the strength in private non-residential and infrastructure construction activity is expected to lessen the impact of affordability-driven headwinds in single-family residential construction.

Tailwinds

  • Population-growth trends.
  • Shortages of residential units.
  • Multi-year federal highway bill.
  • State-level infrastructure spending.
  • Strength in private non-residential construction activity.

Headwinds

  • Affordability-driven headwinds in single-family residential construction.
  • Cyclical and seasonal nature of the Company’s businesses.
  • Fluctuations in public infrastructure expenditures.
  • Adverse weather conditions.
  • Prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.5%

Avg return

30 days after

59%

39 / 66 earnings

Positive

+12.2%

Q2 2019

Best reaction

-8.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.7%+1.6%+14.3%
Q3 2026-2.9%+0.8%+2.7%
Q2 2026-8.0%-10.6%-4.0%
Q1 2026+2.8%-0.2%+4.3%
Q4 2025-8.9%-11.4%-19.2%
Q2 2025-0.2%-0.5%+5.8%
Q1 2025+9.5%+2.0%+2.4%
Q4 2024-7.1%-7.3%-15.6%
Q3 2024+4.1%+10.3%+19.9%
Q2 2024-2.9%+1.2%+17.9%
Q4 2023+4.1%+3.8%+6.1%
Q3 2023-2.5%+0.9%-4.1%
Q2 2023-1.0%-0.2%+9.8%
Q1 2024+0.4%-2.1%-2.8%
Q1 2023+0.4%-2.1%-2.8%
Q4 2022-1.2%+1.3%-11.2%
Q3 2022+0.7%+3.2%-3.9%
Q2 2022+7.5%+12.9%+15.4%
Q1 2022+7.0%+5.5%+17.7%
Q4 2021-4.0%-1.8%-7.8%
Q3 2021+1.5%+6.8%+15.7%
Q2 2021+2.7%+11.1%+12.0%
Q1 2021-1.0%+1.6%+4.1%
Q4 2020+5.5%+10.7%+22.8%
Q3 2020-1.1%-7.0%-11.6%
Q2 2020+3.4%+1.5%+0.4%
Q1 2020-5.4%-6.3%-4.4%
Q4 2019+3.2%+3.4%-0.6%
Q3 2019+2.6%+6.5%+11.1%
Q2 2019+12.2%+17.8%+11.3%
Q1 2019-8.3%-8.0%-13.7%
Q4 2018+1.8%+3.4%+6.1%
Q3 2018-4.1%-10.4%-13.8%
Q2 2018-3.9%-4.2%-4.1%
Q1 2018-0.7%-0.6%-5.1%
Q4 2017+3.4%+2.8%-2.6%
Q3 2017+7.3%+4.5%+1.3%
Q2 2017+3.1%+4.0%+23.2%
Q1 2017+2.4%+0.0%-0.5%
Q4 2016-4.0%
Q3 2016+11.8%
Q2 2016+1.1%
Q1 2016+3.0%
Q4 2015-5.3%
Q3 2015+4.1%
Q2 2015+0.7%
Q1 2015+7.3%
Q4 2014-0.1%
Q3 2014-1.8%
Q2 2014-2.6%
Q1 2014+1.6%
Q4 2013+3.8%
Q3 2013-2.6%
Q2 2013+9.9%
Q1 2013+12.2%
Q4 2012+4.4%
Q1 2010-0.1%
Q4 2009-0.1%
Q1 2012+2.7%
Q4 2011+1.0%
Q3 2010+1.1%
Q3 2011+1.1%
Q2 2011+1.9%
Q2 2010+1.9%
Q1 2011-0.6%
Q4 2010-0.6%

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