J.P. Morgan Adjusts EXP F2012 Estimates

J.P. Morgan is trimming its Eagle Materials Inc. (NYSE: EXP) 2012 estimates primarily “to reflect lower margins as higher fuel, freight, and fiber costs could offset any benefit from newly implemented price increases and continued cost-containment efforts,” J.P. Morgan writes.

“Our new estimates also assume a slightly higer tax rate (28%) than we previously assumed (26%), in line with guidance,” J.P. Morgan writes. “We expect EXP to continue to generate solid FCF this year despite modestly lower earnings, while capex was guided to $15- 20mm, in line with F2011 and our estimates.”

Eagle Materials closed Thursday at $28.20.