Eagle Materials Q4 Profit Almost Triples, But Revenues Miss View

(RTTNews) - Building products maker Eagle Materials Inc. (EXP) Wednesday reported a profit for the fourth quarter that almost tripled from last year, reflecting higher sales volumes and sales prices across all businesses. However, revenues for the quarter missed analysts' estimates.

The Dallas, Texas-based company noted that sales volumes also improved across all businesses, reflecting improving construction fundamentals in the U.S. despite unusually severe winter weather. Gypsum Wallboard experienced the most significant improvement in average net sales prices, with a 12 percent increase compared with the year-ago period.

Eagle Material's net income for the fourth quarter was $22.62 million or $0.45 per share, up from $7.83 million or $0.16 per share in the same period last year. On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

The prior-year quarter's results include acquisition and litigation expense of $1.82 million.

Revenues for the quarter grew 19 percent to $189.89 million from $159.12 million in the year-ago period. Analysts had a consensus revenue estimate of $190.16 million.

Cement revenues for the latest quarter, including joint venture and intersegment revenues, increased 10 percent from last year to $81.7 million. Cement sales volumes increased 4 percent to 803,000 tons, while average net sales price rose 6 percent to $93.01 per ton.

Gypsum wallboard and paperboard revenues for the quarter rose 11 percent from the year-ago period to $106.33 million.

The average gypsum wallboard net sales price for the quarter increased 12 percent to $162.67 per MSF, while gypsum wallboard sales volumes rose 2 percent to 442 million square feet or MMSF. The average paperboard net sales price in the quarter was up 2 percent to $503.62 per ton, while paperboard sales volumes increased 4 percent to 59,000 tons.

For fiscal 2014, Eagle Materials' net income surged to $124.24 million or $2.49 per share from $57.74 million or $1.22 per share in the prior year. Revenues for the year rose 40 percent to $898.40 million from $642.56 million last year. Street expected the company to earn $2.54 per share for the year on revenues of $897.98 million.

EXP closed Wednesday's regular trading at $81.32, down $0.63 or 0.77 percent on a volume of 970,252 shares. In after-hours, the stock further declined $3.02 or 3.71 percent to $78.30.