Valmont Industries, Inc.

Valmont Industries, Inc. (VMI - Analyst Report) is thriving from very strong international demand for both its fabricated metals products and irrigation products. The CEO noted that the company was experiencing particularly strong demand from India and China. Valmont's stock price has been surging since early March, and analysts continue to upgrade their earnings projections.

Valmont Industries, Inc. produces fabricated metal products such as light poles and tower structures to domestic an international markets. The company was founded in 1946, carries a market cap. of $2.91 billion and is headquartered in Omaha, NE.

Record First-Quarter Results

Valmont reported record first-quarter results on Apr 16. Sales were up 24% from the same period last year to $422.3 million. Net Income also improved nicely, increasing 59% to $29.7 million. This produced earnings of $1.13 per share, ahead of analyst expectations of 97 cents.

In comments made during the press conference, Valmont Chairman and CEO Mogans C. Bay noted that the company experienced very strong demand for its products from international markets, particularly from India and China.

Mr. Bay said "the global environment for spending on infrastructure, particularly structures for lighting, traffic and utility, continues to be influenced by the need to maintain and upgrade current infrastructure, as well as by sustained economic growth."

This marks the fourth time in four quarters that the Valmont has surprised and beaten analyst estimates, having done so by an average of 16 cents, or 18.77%, an impressive feat by any standard.

Analyst Estimates Are Rising

Analyst estimates continue to rise in expectation of sustained earnings growth. The current-year estimate has advanced to $4.71 from $4.20 90 days ago.

The Chart

Since early March Valmont's share price has been surging, bottoming out at just over $71 and advancing to as high as over $119, an amazing short-term return of over 65%. As it stands, this stock has consolidated into a very tight range right at the high. If shares break higher, a new 52-week and all-time high should be close at hand. Take a look at the chart below.

Read the full analyst report on VMI