Martin Marietta Materials posted record second-quarter results that nonetheless fell short of Wall Street’s expectations.
The Raleigh-based company reported Tuesday that its net sales rose 7.7 percent to $915.4 million in the second quarter. Analysts polled by Bloomberg News had been expecting $935 million. Net sales rose 12 percent after excluding sales racked up by the company’s California cement business, which it sold in the third quarter of last year.
Net income totaled $122.1 million, or $1.90 per share, up 49 percent from a year ago. Analysts had been projecting net income of $2.02 per share.
CEO Ward Nye told analysts during a conference call that Martin Marietta capitalized on “improving economic conditions” and benefited from both higher volumes and price increases during the quarter.
Martin Marietta produces rock, gravel, cement and other materials used to build roads, houses and commercial buildings.
Martin Marietta reaffirmed that it is projecting net sales for the full year of between $3.5 billion and $3.7 billion, which at the midpoint would be a 10 percent increase.
“As we look forward to the balance of the year and beyond, we expect continued steady growth in construction activity in our markets,” Nye said.
The company’s shares closed Tuesday at $198.50, up $2.19.