Martin Marietta Materials shares rose 9 percent Tuesday after the Raleigh company forecast continued growth in 2016.
Martin Marietta forecast a 5 to 7 percent increase in shipments of its construction materials in 2016 and a 6 to 8 percent percent increase in pricing.
The company also recorded record sales and profitability in the fourth quarter despite being hurt by extremely wet weather in several of its key markets.
Martin Marietta had sales of $780.8 million in the quarter, just slightly above the $779.5 million it recorded during the fourth quarter of 2014. Earnings per share was $1.26, compared with earnings per share of 94 cents during the same period the prior year.
Those numbers were below Wall Street estimates. The consensus among analysts who cover the company was sales of $826.4 million and earnings per share of $1.32, according to Bloomberg.
Martin Marietta produces rock, gravel and other materials used to build roads, subdivisions and commercial buildings. Demand for those materials has picked up as the economic recovery has gained steam.
But the fourth quarter was among the wettest on record in many areas of the U.S., including in North Carolina, South Carolina and Texas, said Martin Marietta CEO Ward Nye in a statement. Those states are among the company’s largest markets.
“These conditions significantly constrained construction and related activity, which led to lower-than-expected shipment and production volumes during the quarter,” Nye said.
Martin Marietta shipped 2.3 percent more materials in the fourth quarter. Pricing rose 8 percent.
Nye said the company expects to continue to benefit from strong job growth in the U.S. and a backlog of projects that were delayed because of the wet weather.
For the full-year, Martin Marietta recorded a record $3.3 billion sales, a 22 percent increase over 2014. Earnings per share was a record $4.29, compared with $2.71 in 2014.
Martin Marietta shares closed Tuesday at $128.88, up $11.03. The stock is up 8 percent over the past year.