This concrete company is also rated ‘Buy’ by Zack’s, based on consistent price performance and upward earnings revisions (four in the past 30 days). The shares were also just upgraded by Citigroup to ‘Buy’. And the company beat earnings estimates by $0.34 in the last quarter.
U.S. Concrete (USCR)
From Game Changers
U.S. Concrete (USCR) reported earnings this morning before the bell and, in short, the news was good. The company earned $263.6 million during the quarter, working out to $0.92 per share. This far exceeded analyst expectations.
U.S. Concrete’s metrics look good from any angle.
Compared to the same quarter of last year, the company saw margins increase by 1.8%. Over the same period U.S. Concrete saw its ready-mix concrete revenue grow 50% on an increase in sales volume of 37.5% and a 9% increase in the average selling price. Meanwhile, revenue in its aggregate products category—sand, gravel, crushed stone—grew 14.9%, while margins increased 4.9%.
U.S. Concrete completed eight acquisitions in 2015, each a part of its efforts to vertically integrate its operations. The preliminary success of these efforts is evident in the company’s increasing margins.
Prior to this earnings report, the stock was up 6% for the year. I expect these strong numbers to keep the momentum going.
Ian Wyatt, Game Changers, www.wyattresearch.com, 866-447- 8625, March 3, 2016