Martin Marietta Materials Inc. reported fourth-quarter net earnings increased 13 percent but missed analyst expectations, according to a filing with the Securities and Exchange Commission.
Net earnings in the fourth quarter also increased almost 13 percent to $98.9 million, although earnings per share of $1.55 missed the consensus analyst expectation of $1.65. Fourth quarter net sales increased 14 percent to $889 million, exceeding analyst estimates, and gross profit was up 22 percent from the same time last year
The company supplies the aggregate building materials used in constructing roads and foundations and has its headquarters in Raleigh.
President and CEO Ward Nye said that the company is “confident that a durable, multi-year construction recovery is now underway” and is optimistic about upcoming government infrastructure plans.
“We are encouraged by the emerging bipartisan dialogue in Washington regarding the need for substantial investment in our nation’s infrastructure,” Nye said. “While the specific terms and timing of any proposed legislation is unclear, we believe momentum is building toward executive and Congressional action in the near-term.”
Nye said the company is looking at the $305 billion Fixing America’s Surface Transportation Act (FAST Act) to accelerate infrastructure demand. The act was passed in December 2015 by President Barack Obama and is scheduled to fund highway construction and public transportation programs from 2016 through 2020.
President Donald Trump has also proposed extensive infrastructure plans that would benefit Martin Marietta.
In 2017 the company expects the infrastructure market to increase mid-single digits, and 2017 guidance for consolidated net sales is $3.95 billion, up from $3.6 billion in 2016. On the high end, the company expects consolidated gross profit to grow from $900 million in 2016 to $1.1 billion in 2017.
The company’s stock jumped 15 percent following the 2016 election of Trump but has remained relatively flat since then. It was trading at $226.30, down $5.09, or 2.2 percent, in midday Tuesday trading.
