A Look at Summit Materials's Upcoming Earnings Report

Summit Materials SUM is preparing to release its quarterly earnings on Wednesday, 2024-10-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Summit Materials to report an earnings per share (EPS) of $0.71.

The market awaits Summit Materials's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

Last quarter the company beat EPS by $0.01, which was followed by a 3.1% increase in the share price the next day.

Here's a look at Summit Materials's past performance and the resulting price change:

Summit Materials Share Price Analysis

Shares of Summit Materials were trading at $45.63 as of October 28. Over the last 52-week period, shares are up 34.11%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Summit Materials

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Summit Materials.

With 10 analyst ratings, Summit Materials has a consensus rating of Buy. The average one-year price target is $47.5, indicating a potential 4.1% upside.

Understanding Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Eagle Materials and Knife River Holding, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Eagle Materials received a Buy consensus from analysts, with an average 1-year price target of $311.5, implying a potential 582.66% upside.
• The consensus among analysts is an Outperform trajectory for Knife River Holding, with an average 1-year price target of $110.0, indicating a potential 141.07% upside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for Eagle Materials and Knife River Holding are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Summit Materials ranks highest in Revenue Growth among its peers. It is at the bottom in Gross Profit and Return on Equity.

Get to Know Summit Materials Better

Summit Materials Inc is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company's three operating and reporting segments are the West, East and Cement segments. It operates in 21 U.S. states and in British Columbia, Canada and has assets in 21 U.S. states and in British Columbia, Canada through its platform.

Unraveling the Financial Story of Summit Materials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Summit Materials's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 53.37%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Summit Materials's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 9.49%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Summit Materials's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.48%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Summit Materials's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.29%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Summit Materials's debt-to-equity ratio surpasses industry norms, standing at 0.66. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Summit Materials visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.