Earnings Miss: Eagle Materials Inc. Missed EPS By 8.9% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Eagle Materials Inc. (NYSE:EXP), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Eagle Materials missed analyst forecasts, with revenues of US$624m and statutory earnings per share (EPS) of US$4.26, falling short by 3.7% and 8.9% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Eagle Materials

Taking into account the latest results, Eagle Materials' eight analysts currently expect revenues in 2025 to be US$2.31b, approximately in line with the last 12 months. Per-share earnings are expected to rise 4.7% to US$15.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$15.51 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$309, 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$333 per share, while the most bearish prices it at US$265. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Eagle Materials' revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Eagle Materials.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Eagle Materials' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$309, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eagle Materials analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Eagle Materials that you need to take into consideration.

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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.