Here's What Analysts Are Forecasting For Martin Marietta Materials, Inc. (NYSE:MLM) After Its Annual Results

Investors in Martin Marietta Materials, Inc. (NYSE:MLM) had a good week, as its shares rose 3.8% to close at US$553 following the release of its full-year results. Martin Marietta Materials reported in line with analyst predictions, delivering revenues of US$6.8b and statutory earnings per share of US$18.82, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Martin Marietta Materials

Taking into account the latest results, the consensus forecast from Martin Marietta Materials' 19 analysts is for revenues of US$7.02b in 2024. This reflects a satisfactory 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.3% to US$21.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.98b and earnings per share (EPS) of US$21.04 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$575. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Martin Marietta Materials at US$642 per share, while the most bearish prices it at US$350. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Martin Marietta Materials' revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2024 being well below the historical 10% 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 6.2% 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 Martin Marietta Materials.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Martin Marietta Materials' revenue is expected to 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 Martin Marietta Materials analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Martin Marietta Materials is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.