J.P. Morgan Adjusts EXP F2012 Estimates

J.P. Morgan is trimming its Eagle Materials Inc. EXP 2012 estimates primarily “to reflect lower margins as higher fuel, freight, and fiber costs could offset any benefit from newly implemented price increases and continued cost-containment efforts,” J.P. Morgan writes. “Our new estimates also assume a slightly higer tax rate (28%) than we previously assumed (26%), in line with guidance,” J.P. Morgan writes. “We expect EXP to continue to generate solid FCF this year despite modestly lower earnings, while capex was guided to $15- 20mm, in line with F2011 and our estimates.” Eagle Materials closed Thursday at $28.20.