Texas Industries Earnings: Here’s Why Investors Like These Results

Texas Industries Inc. (NYSE:TXI) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Texas Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.21 in the quarter versus EPS of $-0.87 in the year-earlier quarter.

Revenue: Rose 4.99% to $141.36 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Texas Industries Inc. reported adjusted EPS loss of $0.21 per share. By that measure, the company beat the mean analyst estimate of $-0.41. It beat the average revenue estimate of $140.98 million.

Quoting Management: “Construction activity in Texas and California continued to improve this quarter,” stated Mel Brekhus, Chief Executive Officer. “Gross profit increased $14.2 million on increased sales of $19.5 million. This increase in profitability primarily reflects the benefits of increased shipments in reducing unit costs, and success in increasing efficiencies throughout the Company.”
“The commissioning of the second kiln at our central Texas plant is on target to be completed this spring. This additional 1.4 million tons of cement capacity, in combination with the East Texas ready mix assets we acquired last week, places TXI in a strong position to benefit from the recovery in construction that is underway,” added Brekhus.

Key Stats (on next page)…

Revenue decreased 15.7% from $167.69 million in the previous quarter. EPS increased to $-0.21 in the quarter versus EPS of $-0.40 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.19. For the current year, the average estimate has moved up from a loss of $0.74 to a loss of $0.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)