Eagle Materials Inc. (NYSE:EXP) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Eagle Materials Inc. (NYSE:EXP) filed its quarterly result this time last week. The early response was not positive, with shares down 8.9% to US$212 in the past week. Revenues of US$639m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.23, missing estimates by 3.2%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Eagle Materials' twelve analysts currently expect revenues in 2026 to be US$2.29b, approximately in line with the last 12 months. Statutory per share are forecast to be US$13.67, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$2.32b and earnings per share (EPS) of US$13.96 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Eagle Materials

The consensus price target held steady at US$246, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Eagle Materials at US$280 per share, while the most bearish prices it at US$220. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Eagle Materials is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.6% annualised decline to the end of 2026. That is a notable change from historical growth of 8.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Eagle Materials is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Eagle Materials. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Eagle Materials analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Eagle Materials is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.