NYSE$MLM

Martin Marietta Materials Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Martin Marietta achieved record revenues, profits, and adjusted EBITDA for the full year, driven by improved shipments and pricing for aggregates, cement, and asphalt.

Martin Marietta reported strong Q4 2019 results, concluding the most profitable year in the company's history. The company saw improvements in shipments, pricing, and profitability across the Building Materials business. Total revenues reached $1.10 billion, with net earnings attributable to Martin Marietta at $131.0 million, or $2.09 per diluted share.

  • Achieved eighth consecutive year of growth for revenues, gross profit, adjusted EBITDA and earnings per diluted share.
  • Aggregates shipments and pricing improved 4.0 percent and 5.3 percent, respectively.
  • Cement shipments increased 22.3 percent, driven by strong underlying Texas demand.
  • The company repurchased 154,500 shares of common stock during the fourth quarter 2019.

Headline financials

Total Revenue

$1.1B

Previous: $956M+15.1%
EPS (adj)

$2.09

Previous: $1.50+39.3%
Aggregates Shipments (tons)

43.9M

Previous: 42.2M+4.0%
Average Selling Price per Ton

$14.38

Previous: $13.65+5.3%
Capital Expenditures

$111M

Previous: $114M-2.9%
Free Cash Flow

$206M

Previous: $150M+37.4%
Net Income

$131M

Previous: $94.2M+39.0%
Operating Income

$185M

Previous: $147M+25.5%
Gross Profit

$259M

Previous: $227M+13.8%
Cash & Equivalents

$21M

Previous: $44.9M-53.3%
Total Assets

$10.1B

Previous: $9.55B+6.1%
Stock-Based Comp

$5.69M

Previous: $6.17M-7.8%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$1.1B

Q4 2019+15.1%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Martin Marietta · $1.04B total across 1 segment · Q4 2019

  • Building Materials Business
    $1.04B+10.1%

Forward guidance

Martin Marietta is confident in its 2020 outlook, expecting steady and sustainable construction growth, driven by infrastructure, nonresidential, and residential markets.

Tailwinds

  • Infrastructure construction is expected to benefit from lettings and contract awards in key Martin Marietta states, continued FAST Act funding, and regulatory reform.
  • Nonresidential construction is expected to increase in both the commercial and heavy industrial sectors across many of the Company’s key markets.
  • Residential construction is expected to continue growing within Martin Marietta’s geographic footprint, particularly as mortgage rates remain attractive.
  • Permit growth for single-family and multi-family housing units remains healthy in Martin Marietta’s top ten states.
  • Continued strength in residential construction supports future infrastructure and nonresidential activity.

Headwinds

  • The performance of the United States economy.
  • Shipment declines resulting from economic events beyond the Company’s control.
  • A widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting aggregates price.
  • The termination, capping and/or reduction or suspension of the federal and/or state gasoline tax(es) or other revenue related to public construction.
  • The level and timing of federal, state or local transportation or infrastructure or public projects funding, most particularly in Texas, Colorado, North Carolina, Georgia, Iowa and Maryland.

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 Q4 2019

Historical avgQ4 2019

+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%

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