12:58 PM EDT, 05/21/2024 (MT Newswires) -- Eagle Materials ( EXP ) fell short of analyst expectations in the fiscal fourth quarter as revenue dipped in concretes and aggregates while higher maintenance costs weighed on profitability in the cement business, the company reported on Tuesday.

Revenue rose to $476.7 million for the three months ended March 31 from $470.1 million a year ago but missed the $491.5 million average analyst estimate on Capital IQ.

The construction material supplier's earnings per share dropped to $2.24 from $2.79 year over year and was below analysts' $2.70 view. Shares of Eagle Materials ( EXP ) fell 6% in midday trade.

Cement revenue rose 6% to $227.6 million amid higher sales prices and a $9 million contribution from the Stockton Import Terminal acquisition. The division's operating earnings tumbled 18% due to lower sales volume and higher operating costs driven by roughly $7 million in maintenance costs.

Concrete and aggregates revenue dropped 8% to $48.7 million due to lower concrete sales volume. Light materials revenue dipped 2% to $238.6 million amid lower wallboard pricing and volume.

"While in the fourth quarter both cement and concrete and aggregates results were affected by adverse weather conditions and cement results by increased maintenance costs, we expect underlying fundamentals to remain solid in our markets during fiscal 2025," Chief Executive Michael Haack said in a statement.

The company expects large-scale infrastructure spending and domestic manufacturing projects to support strong demand for cement in the ongoing fiscal year, according to Haack. An increase in federal infrastructure investment will add to "already healthy public spending at the state and local levels," Haack said on a conference call, according to a Capital IQ transcript.

Eagle Materials ( EXP ) is anticipating higher residential construction activity as mortgage rates stabilize and the supply shortage spurs new development projects, according to Haack. While residential construction is "showing signs of recovery," much of the picture won't come into view until the second half of 2024 or early 2025, he said on the call.

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