Eagle Materials Inc. Stock Surges 38.9%
This Week
01/26/2006
Eagle Materials Inc. (ticker EXP) reported
better-than-expected earnings yesterday while also increasing
its dividend and announcing a stock split. This week alone,
the cement company's stock has risen $45.73 per share, a gain
of 38.9%. Today the stock rose 27% following the company's
quarterly earnings report.
The company's wild ride started off on Tuesday
when research firm BB&T Capital Markets upgraded the firm
from "hold" to "buy." The stock responded
with a 7.9% gain on volume three times higher than normal.
On Wednesday after the market closed, Eagle
Materials announced that:
- quarterly profits rose 51%
- annual dividends will increase by 75%
- it is issuing initial fiscal year 2007
earnings guidance 30% to 40% above fiscal year 2006 guidance
- the company plans to increase cement
capacity by 50%
- its stock will split 3-for-1
When trading commenced on Thursday, the
company's stock surged $34.40 per share, a 26.7% increase
on volume eight times greater than average.
Eagle Materials was added to our Primary
Stock Portfolio in February of last year and is up over
102% in less than a year.
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