Summit Materials (SUM) Earnings Preview: What to Watch for on October 30th
Investors are eagerly awaiting Summit Materials’ (SUM) quarterly earnings release on Wednesday, October 30th. Analysts are projecting an earnings per share (EPS) of $0.71, and the market is hoping for news of exceeding estimates and optimistic guidance for the upcoming quarter. Positive guidance can significantly impact stock prices, making this a key element for investors to watch closely.
A Look Back at Summit Materials’ Earnings Track Record
Summit Materials has consistently demonstrated a positive earnings trend. Last quarter, the company beat EPS by $0.01, resulting in a 3.1% share price increase the following day. Here’s a breakdown of the company’s past performance and subsequent price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.65 | 0.66 | 3.0% |
| Q1 2024 | -0.23 | -0.12 | -0.0% |
| Q4 2023 | 0.26 | 0.31 | 5.0% |
| Q3 2023 | 0.75 | 0.81 | -1.0% |
Positive Market Sentiment and Share Price Performance
As of October 28th, shares of Summit Materials were trading at $45.63. Over the past year, the share price has risen by 34.11%. This positive performance suggests a bullish sentiment among long-term shareholders going into this earnings release.
Analyst Perspectives and Expectations
Staying informed about market sentiment and industry expectations is crucial for investors. Summit Materials currently holds a consensus rating of Buy from 10 analysts, with an average one-year price target of $47.5, indicating a potential 4.1% upside.
Comparative Analysis: Summit Materials Among Peers
To gain further insight into Summit Materials’ performance, it’s beneficial to compare its expectations and market positioning against its peers. Eagle Materials and Knife River Holding are two major players in the industry.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| Eagle Materials | Buy | $311.5 | 582.66% |
| Knife River Holding | Outperform | $110.0 | 141.07% |
Key Takeaways from Peer Analysis
The following table summarizes key metrics for Eagle Materials and Knife River Holding, providing an understanding of their standing within the industry:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Summit Materials | Buy | 53.37% | $368.25M | 2.48% |
| Eagle Materials | Buy | 1.19% | $186.87M | 10.07% |
| Knife River Holding | Outperform | 2.77% | $176.22M | 6.19% |
Key Takeaway:
Summit Materials ranks highest in Revenue Growth among its peers. However, it falls behind in Gross Profit and Return on Equity.Understanding Summit Materials’ Business
Summit Materials Inc. is a leading provider of aggregates, cement, ready-mix concrete, asphalt paving mix, and concrete products. The company operates quarries, sand and gravel pits, cement plants, distribution terminals, ready-mix concrete plants, asphalt plants, and landfill sites across 21 U.S. states and British Columbia, Canada.
Delving into Summit Materials’ Financial Story
Market Capitalization:
Summit Materials’ market capitalization is currently below industry averages, potentially reflecting factors like growth expectations or operational capacity.Revenue Growth:
The company has exhibited exceptional revenue growth in recent quarters. As of June 30th, 2024, Summit Materials achieved an impressive 53.37% revenue growth rate, exceeding the average among peers in the Materials sector.Net Margin:
Summit Materials’ net margin currently falls below industry averages at 9.49%. This indicates potential challenges in achieving strong profitability and effective cost management.Return on Equity (ROE):
Summit Materials’ ROE of 2.48% is below industry averages, suggesting potential challenges in efficiently utilizing equity capital to generate optimal financial returns.Return on Assets (ROA):
Summit Materials’ ROA of 1.29% is also below industry averages, highlighting potential challenges in efficiently utilizing assets to achieve optimal financial returns.Debt Management:
Summit Materials’ debt-to-equity ratio of 0.66 exceeds industry norms. This indicates a significant amount of debt, potentially posing financial challenges.Stay Informed with Summit Materials’ Earnings Calendar
For continuous updates on Summit Materials’ earnings releases, visit our website’s dedicated earnings calendar.
