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Fly News Breaks for November 13, 2019
Nov 13, 2019 | 08:08 EDT
Jefferies analyst Philip Ng views Continental Building Products (CBPX) takeover by Saint-Gobain (CODYY) as a "very good outcome" for Continental shareholders. The analyst also views the deal as a modest negative for Eagle Materials (EXP), noting that its "two most logical acquirers" are now "out of the picture." However, the "outsized" valuation Continental Building extracted likely props up the value of Eagle Materials' wallboard assets in the public markets, Ng tells investors in a research note.
News For EXP;CBPX;CODYY From the Last 2 Days
May 20, 2022 | 07:56 EDT
DA Davidson analyst Brent Thielman lowered the firm's price target on Eagle Materials to $145 from $160 and keeps a Neutral rating on the shares. The company's Q4 earnings topped estimates and pricing is experiencing solid momentum across product line, but concerns around a shifting interest rate environment 'dominate the narrative' over the near term, the analyst tells investors in a research note.
May 19, 2022 | 06:32 EDT
Reports Q4 revenue $413.1M, consensus $401.15M. Commenting on the annual results, Michael Haack, President and CEO, said, "As we look back on another extraordinary year, I am extremely proud of our team's ability to deliver record operating and financial results despite multiple external challenges, including transportation disruptions, supply chain constraints and, of course, continuing to navigate the COVID-19 pandemic. During the fiscal year, we expanded gross margins by 270 bps to 27.9%, reported record earnings per share of $9.14, generated operating cash flow of $517 million and repurchased nearly 4 million shares of our common stock for $590 million. Early in the year, we completed the refinancing of our capital structure, which included using cash on-hand and proceeds from a new $750 million 10-year bond with an interest rate of 2.50%, to repay existing loans. This refinancing resulted in a low-cost, long-dated capital structure with significant liquidity. At the end of the fiscal year, debt was $950 million, and our net leverage ratio was 1.4x, giving us substantial financial flexibility. As we begin our new fiscal year, Eagle is well-positioned, both financially and geographically, to capitalize on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near- and long-term. We expect that infrastructure investment should increase in the latter part of our fiscal year, as federal funding from the recently enacted Infrastructure Investment and Jobs Act begins in earnest. And, despite recent interest rate increases, housing demand remains strong across our geographies, outpacing the supply of homes. Nonresidential construction activity is also picking up. Employee health, safety and environmental stewardship remain core objectives, and we demonstrated meaningful progress in all areas over the year. Our safety performance outpaced the industry average, and we took significant steps to reduce our carbon footprint this year and over the next several years with the introduction of our new Portland Limestone Cement product. This product has lower carbon intensity than standard cement with similar performance attributes. A tremendous amount of effort went into this project, and we are beginning to realize the benefits."