Texas Industries falls as 1Q results miss Street
NEW YORK (AP) — Texas Industries' stock fell Thursday after the cement and building-materials supplier's first-quarter performance missed analysts' expectations.
THE SPARK: Texas Industries Inc. reported on Wednesday that it earned a penny per share on revenue of $233.1 million for the period ended Aug. 31.
Analysts surveyed by FactSet expected earnings of 2 cents per share on revenue of $235.9 million.
THE ANALYSIS: Sterne, Agee & Leach's Todd Vencil said in a client note that Texas Industries' earnings included an 8 cents per share gain on the sale of real estate. Excluding this gain, the company lost 7 cents per share for the quarter.
The analyst said that cement shipments were weak in California, up 8 percent compared with his forecast for a 20 percent increase. The average selling price of $79.43 also missed his $81 estimate.
Vencil reaffirmed a "Neutral" rating.
Mike Betts of Jefferies was also disappointed by the average selling price for cement, which he said was only 2 percent higher than the prior-year period. But Betts said the concrete business did better than he anticipated thanks to lower-than-expected costs and higher volumes.
The analyst kept a "Hold" rating and $62 price target.
A representative for Texas Industries did not immediately respond to an email seeking comment.
SHARE ACTION: Down $7.42, or 11 percent, to $59.60 in afternoon trading. The stock has traded between $39.52 and $75.20 over the last year. The shares are up 17 percent for the year to date.