Earnings Preview: Texas Industries, Inc

Jul.10.12 | About: Texas Industries (TXI)

Company Profile
Texas Industries, Inc., together with its subsidiaries, engages in the manufacture and sale of heavy construction materials in the southwestern United States. It operates in three segments: Cement, Aggregates, and Consumer Products. Texas Industries (NYSE:TXI) is scheduled to report its fourth quarter earnings results on July 12, 2012, before market open.

Technical Overview
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Texas Industries has a market cap of $1.16 billion and it is currently trading around $41.42 with a 52 week range of $21.89 to $42.19. The stock has risen 34.57% year to date. The following table provides the key financial ratios for Texas:

Key Ratio Value
Current Ratio 2.47
Profit Margin -9.54%
Return On Assets (ROA) -4.10%
Return On Equity (ROE) -9.15%
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Recent News

  • On April 23, 2012, Texas Industries announced the sale of its aggregate rail distribution terminal and associated assets located in Stafford, Texas to Lex Missouri City, LP, effective April 20, 2012.
  • On April 17, 2012, Texas Industries announced the sale of its Texas based packaged products operations to Charlotte, NC-based Bonsal American, a unit of Oldcastle, Inc. The transaction included five production facilities, stretching from the Dallas-Fort Worth Metroplex to the Houston metro area and extending through Austin and Central Texas.

Analyst Guidance and Earnings History
The fourth quarter revenues are expected to be $182.77 million when compared to $175.76 million for the same quarter last year. Earnings per share for the fourth quarter are expected to be a loss of 34 cents a share, up from a loss of 57 cents a share in the year-ago period. The average price target from analyst for Texas Industries is $35.43 with average rating is HOLD

Out of the last 4 quarters, Texas Industries has missed the EPS all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Texas Industries:

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Competition
Cemex SAB de CV (NYSE:CX), Vulcan Materials Company (NYSE:VMC), Martin Marietta Materials (NYSE:MLM), and US Concrete (NASDAQ:USCR) are considered as major competitors for Texas Industries and the table below provides the key metrics for these companies:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in TXI over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.