Martin Marietta Earnings: Pricings Gains Show No Signs of Slowing, but Shares Look Expensive

Narrow-moat-rated Martin Marietta Materials reported solid second-quarter results as a slowdown in shipments was more than offset by pricing gains across its portfolio. Net sales increased 11% year over year as three of its four primary segments reported double-digit growth in average selling prices. Despite near-term pressure on shipments, Martin Marietta continues to flex its pricing power, which we expect will offset shipment headwinds through the end of the year. As such, we've increased our fair value estimate to $323 per share from $304 due to higher near-term profitability in our forecast.