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Crh Public Co Reports Strong FY 2023 Earnings with 30% EPS Growth

By Don Francis, Editor
May 14, 2024 9:07 AM UTC
Crh Public Co Reports Strong FY 2023 Earnings with 30% EPS Growth

Truist Securities's Keith Hughes raised their price target on Crh Public Co (NYSE: CRH) by 5.3% from $95 to $100 on 2024/05/13. The analyst maintained their Strong Buy rating on the stock.

Despite "tepid" revenue growth, Crh Public Co managed to deliver a quarterly beat, thanks to pricing and cost management, according to Hughes. The company's fiscal year 2023 earnings report, released on May 10, showcased some positive developments in its Materials Products and American Aggregates divisions.

Hughes highlighted that Materials Products experienced price increases during the quarter, while American Aggregates witnessed increased organic volume gains compared to its peers, who all saw declines.

For fiscal year 2023, Crh Public Co reported earnings per share (EPS) of $4.65, marking a 30% year-over-year increase. The company also saw a 7% year-over-year revenue growth, reaching $34.9 billion. Adjusted EBITDA for the year amounted to $6.2 billion, reflecting a 15% increase compared to the previous year.

Looking ahead to fiscal year 2024, Crh Public Co's management has provided guidance. The company expects EPS to be in the range of $5.15 to $5.45 and adjusted EBITDA to be between $6.55 billion and $6.85 billion. Additionally, Crh Public Co anticipates capital expenditures (capex) to range from $2.2 billion to $2.4 billion.

CRH's CEO, Albert Manifold, expressed satisfaction with the company's performance in 2023, stating, "2023 marked another record year of financial delivery for CRH, supported by good underlying demand across our key end-use markets, further pricing progress, and the continued benefits of our differentiated, customer-focused strategy."

Manifold also emphasized the company's evolution from a base materials supplier to a fully integrated provider of value-added solutions. He highlighted CRH's technical expertise, product innovation, and commitment to solving complex problems for customers while making the construction process simpler, safer, and more sustainable.

Despite facing inflationary cost pressures in 2023, CRH managed to expand its margins and deliver growth in profits, cash generation, and returns. Manifold expressed confidence in the company's ability to capitalize on growth opportunities and create value in 2024 and beyond, thanks to its strong balance sheet and efficient capital allocation.

According to the latest analyst ratings, 100% of top-rated analysts currently rate CRH as a Strong Buy or Buy. No analysts consider it a Hold, and none recommend selling the stock.

Since CRH's latest quarterly report on May 10, the stock price has experienced a 2% decline. However, on a year-over-year basis, the stock has surged by 65.9%. CRH has outperformed the S&P 500, which has seen a 26.2% increase during the same period.

Keith Hughes, the Truist Securities analyst who raised the price target and maintained the Strong Buy rating on CRH, holds an impressive track record. Ranked in the top 1% out of 4,581 Wall Street analysts by WallStreetZen, Hughes boasts an average return of 33.8% and a 76.6% win rate. Their expertise spans various sectors, including Consumer Cyclical and Industrials.

CRH plc, the parent company of Crh Public Co, specializes in manufacturing building materials and operating builders' supply and 'Do-It-Yourself' stores. Its offerings encompass cement, aggregates, ready-mixed concrete, asphalt/bitumen, and agricultural and chemical lime. Headquartered in Dublin, Ireland, CRH plc emerged from the 1970 merger of Cement Limited and Roadstone Limited.

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