We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Valmont's (VMI) Q1 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Valmont Industries (VMI - Free Report) posted a profit (on a reported basis) of roughly $39 million or $1.72 per share in first-quarter 2017, up 18.2% year over year from net earnings of around $33 million or $1.45, a year ago.
Barring one-time items, earnings came in at $1.68 per share for the reported quarter, up from $1.49 a year ago. The results topped the Zacks Consensus Estimate of $1.62.
Net sales for the quarter were $637.5 million, up 7% year over year, also beating the Zacks Consensus Estimate of $624 million. Revenues improved across all segments, led by a strong performance in Utility Support Structures Segment.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Broadly, the Omaha, NE-based company classifies its business segments as infrastructure- and agriculture-related.
Infrastructure-Related
Engineered Support Structures: The segment’s sales of $180.6 million for the reported quarter were 2% higher than the prior-year quarter, helped by improved global wireless communication product and intercompany sales. Sales of lighting and traffic products declined modestly in North America. Lighting and traffic structure sales in Europe mainly declined due to lower sales from export. In Asia-Pacific region, the sales of lighting and traffic products were comparable.
Utility Support Structure: Sales rose 21% year over year to $174.6 million, supported by utility reliability investments in the North American transmission grid, interconnecting regional transmission grids, renewable and a favorable sales mix.
Coatings: This segment saw net sales increase year over year by 7% to $73.5 million, supported by price increase to offset higher zinc cost. The sales volume improved as the quarter progressed.
Energy and Mining: Net sales rose 8% to $78 million on gains across major product lines. Offshore wind structures and component sales offset increased on the back of continued development in Europe’s North Sea region. Sales in the non-traditional markets improved, offsetting weak demand for oil and gas exploration markets. Stronger commodity prices and improving construction market supported increased sales in Australia.
Agriculture-Related
Irrigation: The segment reported net sales of $167.2 million, up 6% year over year. Sales in the North American market increased modestly while international sales improved broadly on the back of a stronger Brazil market and favorable currency translations.
Financial Position
Valmont ended first-quarter 2017 with a cash balance of $425.2 million, up roughly 9.7% year over year. Long-term debt at the end of the quarter was $754.5 million, down around 0.3% year over year.
Outlook
According to Valmont's Chairman and CEO, Mogens C. Bay, the company is encouraged by improved demand in certain markets, substantiated by second straight quarter of improved sales. Reconfirming the earnings, sales and cash guidance for the year, the company acknowledged that volatility in the prices of certain raw materials and weak fundamentals in farm economy, could still impact some businesses.
Price Performance
Valmont’s shares rallied around 10.8% over the past three months, outperforming the Zacks categorized Steel-Pipes and Tubes industry’s 9% loss.
U.S. Steel has an expected long-term earnings growth of 8%.
Kronos has an expected long-term earnings growth of 5%.
Lundin has an expected long-term earnings growth of 34.1%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Valmont's (VMI) Q1 Earnings and Revenues Beat Estimates
Valmont Industries (VMI - Free Report) posted a profit (on a reported basis) of roughly $39 million or $1.72 per share in first-quarter 2017, up 18.2% year over year from net earnings of around $33 million or $1.45, a year ago.
Barring one-time items, earnings came in at $1.68 per share for the reported quarter, up from $1.49 a year ago. The results topped the Zacks Consensus Estimate of $1.62.
Net sales for the quarter were $637.5 million, up 7% year over year, also beating the Zacks Consensus Estimate of $624 million. Revenues improved across all segments, led by a strong performance in Utility Support Structures Segment.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. Price, Consensus and EPS Surprise | Valmont Industries, Inc. Quote
Segment Review
Broadly, the Omaha, NE-based company classifies its business segments as infrastructure- and agriculture-related.
Infrastructure-Related
Engineered Support Structures: The segment’s sales of $180.6 million for the reported quarter were 2% higher than the prior-year quarter, helped by improved global wireless communication product and intercompany sales. Sales of lighting and traffic products declined modestly in North America. Lighting and traffic structure sales in Europe mainly declined due to lower sales from export. In Asia-Pacific region, the sales of lighting and traffic products were comparable.
Utility Support Structure: Sales rose 21% year over year to $174.6 million, supported by utility reliability investments in the North American transmission grid, interconnecting regional transmission grids, renewable and a favorable sales mix.
Coatings: This segment saw net sales increase year over year by 7% to $73.5 million, supported by price increase to offset higher zinc cost. The sales volume improved as the quarter progressed.
Energy and Mining: Net sales rose 8% to $78 million on gains across major product lines. Offshore wind structures and component sales offset increased on the back of continued development in Europe’s North Sea region. Sales in the non-traditional markets improved, offsetting weak demand for oil and gas exploration markets. Stronger commodity prices and improving construction market supported increased sales in Australia.
Agriculture-Related
Irrigation: The segment reported net sales of $167.2 million, up 6% year over year. Sales in the North American market increased modestly while international sales improved broadly on the back of a stronger Brazil market and favorable currency translations.
Financial Position
Valmont ended first-quarter 2017 with a cash balance of $425.2 million, up roughly 9.7% year over year. Long-term debt at the end of the quarter was $754.5 million, down around 0.3% year over year.
Outlook
According to Valmont's Chairman and CEO, Mogens C. Bay, the company is encouraged by improved demand in certain markets, substantiated by second straight quarter of improved sales. Reconfirming the earnings, sales and cash guidance for the year, the company acknowledged that volatility in the prices of certain raw materials and weak fundamentals in farm economy, could still impact some businesses.
Price Performance
Valmont’s shares rallied around 10.8% over the past three months, outperforming the Zacks categorized Steel-Pipes and Tubes industry’s 9% loss.
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include United States Steel Corporation (X - Free Report) , Kronos Worldwide Inc (KRO - Free Report) and Lundin Mining Corp. (LUNMF - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
U.S. Steel has an expected long-term earnings growth of 8%.
Kronos has an expected long-term earnings growth of 5%.
Lundin has an expected long-term earnings growth of 34.1%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>