NYSE$MLM

Martin Marietta Materials Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Established new quarterly records for consolidated and aggregates gross margin. Increased pricing and disciplined cost management helped offset shipment declines.

Martin Marietta reported outstanding financial and operational performance in Q3 2020, with expanded consolidated gross margin and significant Adjusted EBITDA. Increased pricing and disciplined cost management helped offset the decrease in shipment volumes. The company also achieved record year-to-date profitability and the best safety performance in its history.

  • Expanded consolidated gross margin 100 basis points to 30.6 percent, a new record.
  • Generated Adjusted EBITDA of $501.7 million (inclusive of nonrecurring gains).
  • Increased pricing across all product lines and disciplined cost management helped offset the anticipated decrease in shipment volumes.
  • Sold certain non-core land and assets, generating a record $69.9 million in gains.

Headline financials

Total Revenue

$1.32B

Previous: $1.42B-7.0%
EPS (adj)

$3.84

Previous: $3.96-3.0%
Aggregates Shipments (tons)

51.8M

Previous: 56.7M-8.6%
Average Selling Price per Ton

$14.75

Previous: $14.37+2.6%
Capital Expenditures

-$251M

Previous: -$283M+11.4%
Free Cash Flow

$43.6M

Previous: -$34.4M+226.7%
Net Income

$294M

Previous: $249M+18.4%
Operating Income

$401M

Previous: $345M+16.0%
Gross Profit

$405M

Previous: $421M-3.8%
Cash & Equivalents

$117M

Previous: $49.1M+137.5%
Total Assets

$10.4B

Previous: $10.2B+2.1%
Stock-Based Comp

$2.7M

Previous: $6.16M-56.2%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$1.32B

Q3 2020-7%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Martin Marietta · $1.26B total across 1 segment · Q3 2020

  • Building Materials Business
    $1.26B

Forward guidance

Martin Marietta anticipates continued industry-wide fluctuations in product demand over the next few quarters due to the COVID-19 pandemic and related governmental actions. The Company remains confident that its favorable pricing trends are sustainable and durable.

Tailwinds

  • Favorable pricing trends are sustainable and durable, aided in part by the continued success of its locally-driven pricing strategy.
  • Attractive underlying fundamentals and long-term secular growth trends in its key geographies.
  • The Company’s record 2019 and year-to-date 2020 performance remain intact and will again be evident as the U.S. economy stabilizes and recovers.
  • Well-positioned geographically, financially and otherwise to drive long-term sustainable growth and shareholder value.
  • Collective commitment to our strategic priorities, disciplined pricing and operational excellence.

Headwinds

  • Continued industry-wide fluctuations in product demand over the next few quarters due to the COVID-19 pandemic and related governmental actions.
  • Anticipate product demand to remain modest through the first half of 2021 due to COVID-19 and related governmental actions.
  • Potential negative impact of the COVID-19 pandemic on the Company’s ability to continue supplying heavy-side building materials and related services at normal levels or at all in the Company’s key regions.
  • The duration, impact and severity of the impacts of the COVID-19 pandemic on the Company, including the markets in which we do business, our suppliers, customers or other business partners as well as on our employees.
  • The economic impact of government responses to the pandemic.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.2%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.6%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+17.6%

Q4 2014

Best reaction

-8.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-1.1%-5.0%
Q4 2025-6.6%-4.1%-17.6%
Q3 2025+1.0%-1.4%-0.1%
Q2 2025+0.4%+2.9%+4.1%
Q1 2025+3.8%+7.4%+8.5%
Q4 2024-2.2%-0.3%-9.7%
Q3 2024+1.4%-0.3%+2.8%
Q2 2024-0.9%-2.1%-6.7%
Q1 2024-2.0%-1.9%-5.9%
Q4 2023+1.6%+2.4%+13.1%
Q3 2023+7.8%+8.0%+14.3%
Q2 2023-2.1%-1.1%-4.6%
Q1 2023+7.9%+8.2%+12.6%
Q4 2022+3.6%+4.3%-10.0%
Q3 2022-0.8%+2.5%+9.4%
Q2 2022+4.8%+4.9%+4.7%
Q1 2022+6.2%-2.6%-2.3%
Q4 2021-1.0%+0.5%-3.2%
Q3 2021+4.5%+5.6%+6.0%
Q2 2021-1.1%-1.3%+4.6%
Q1 2021+5.6%+6.7%+1.4%
Q4 2020+5.0%+9.9%+13.2%
Q3 2020+7.6%+11.6%+9.5%
Q2 2020-6.1%-9.1%-8.3%
Q1 2020-8.5%-7.4%+10.9%
Q4 2019-6.1%-4.8%-32.9%
Q3 2019-0.8%-2.1%+1.1%
Q2 2019+10.6%+9.8%+13.1%
Q1 2019+2.3%+3.4%-0.8%
Q4 2018-3.0%+2.2%+3.1%
Q3 2018+8.5%+5.4%+6.5%
Q2 2018-7.7%-10.6%-7.7%
Q1 2018+3.9%+5.3%+12.2%
Q4 2017+1.4%+1.6%-3.4%
Q3 2017-2.5%-3.3%-6.7%
Q2 2017-4.5%-5.3%-6.4%
Q1 2017+7.2%+6.6%+2.3%
Q4 2016-4.1%-6.0%-9.1%
Q3 2016+2.7%+3.7%+19.2%
Q2 2016+2.0%+1.0%-6.5%
Q1 2016+5.0%
Q4 2015+11.5%
Q3 2015-6.1%
Q2 2015+8.7%
Q1 2015+8.5%
Q4 2014+17.6%
Q3 2014-4.6%
Q2 2014-0.2%
Q1 2014+6.4%
Q4 2013+5.1%
Q3 2013+1.2%
Q2 2013-1.8%
Q1 2013+1.0%
Q4 2012+1.5%
Q3 2012+2.2%
Q2 2012-4.5%
Q1 2012+0.1%
Q4 2011-1.2%
Q3 2011+2.8%
Q2 2011-1.5%
Q1 2010-3.2%
Q1 2011+2.1%
Q4 2010+2.1%
Q4 2008+2.1%
Q3 2009+2.5%
Q3 2010+2.5%
Q2 2010-6.6%
Q2 2009-6.6%
Q4 2009-6.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro