The Boral Limited (ASX: BLD) share price is catching the eye on Monday.
At the time of writing, the building materials company's shares are up 8% to $5.05.
Why is the Boral share price surging?
The catalyst for the rise in the Boral share price on Monday has been the release of a very positive announcement this morning.
According to the release, a stronger-than-expected performance between July and October means its earnings will be better than forecast in FY 2024.
This has been achieved through price traction and cost management across each of Boral's businesses, as well as improving confidence that the gains achieved in the first four months can be held for the balance of the fiscal year.
FY 2024 guidance
Previously, management was guiding to earnings before interest and tax (EBIT) of $270 million to $300 million for the year.
It has now upgraded this FY 2024 EBIT guidance to be in the range of $300 million to $330 million. The midpoint of this range represents a 10.5% increase over the midpoint of its previous guidance.
It will also mean a 36% increase on FY 2023's EBIT of $231.5 million, which itself was more than double what was recorded in the previous year.
Commenting on the guidance upgrade, Boral's CEO, Vik Bansal, said:
We are pleased to upgrade our FY24 guidance, with year-to-date performance reflecting greater discipline in the pricing and cost from our operating model. Price realisation remains extremely important in the current inflationary environment. Volumes year to date have been relatively steady and at this stage, we expect this to continue through the remainder of FY24.
The Boral share price is now up approximately 75% over the last 12 months.