Shares of Eagle Materials (EXP - Get Report) climbed 7.7% to $90.82 Thursday after the company said it was conducting a strategic review of its portfolio of businesses and forecast fourth-quarter results ahead of Wall Street's expectations.
The Dallas, Texas-based company said in a statement it was conducting the review at the suggestion of its largest shareholders.
Eagle Materials said it was considering a "full range of options" focused on creating value, including "separating the businesses and evaluating potential transactions, among other strategic and financial alternatives."
Eagle forecast fourth-quarter revenue of $283 million to $285 million, with a net loss of $2.84 to $2.80 a share. Adjusted earnings are projected to be 85 cents to 89 cents a share. Analysts had been expecting earnings of 76 cents a share on revenue of $273 million.
The company also named current board vice-chairman Mike Nicolais as chairman of the board, succeeding Rick Stewart who will continue to serve as a director.
Goldman Sachs is acting as the company's financial adviser, with Wachtell, Lipton, Rosen & Katz acting as legal counsel.