US Concrete Inc posted a 19 per cent jump in profit, but results missed Wall Street’s forecast, and shares of the cement and concrete maker sank in morning trading.
The company earned $7.2 million, or 19 cents per share, from $6m, or 21 cents per share, during the same period a year ago. US Concrete had 38.9 million shares outstanding in the most recent quarter, compared with 29.1m a year ago.
Sales jumped 23 percent to $188.8m from last year’s $153.2m.
Analysts were looking for earnings of 24 cents per share, according to a poll by Thomson Financial.
The company said adverse weather conditions in Northern California and the Atlantic region, and sluggish conditions in its Memphis, Tenn., and Michigan markets led to lower margins and earnings.
’The slowdown in residential construction continues in our markets,’ said Michael W. Harlan, executive vice president and chief operating officer, in a statement. ’While we are experiencing recovery in the commercial sector of our business today, it is uncertain if the commercial recovery will fully offset the residential slowdown.’
U.S. Concrete said it expects third-quarter earnings between 31 cents to 36 cents per share, on sales between $260m and $270m. Analysts are looking for earnings of 39 cents per share.
For the full year, the company expects sales between $800m and $825m and earnings before interest, taxes, depreciation and amortization between $77 million and $83m.