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Vulcan Materials Company’s (VMC - Free Report) second-quarter 2017 adjusted earnings of 90 cents per share missed the Zacks Consensus Estimate of $1.22 by 26.2%. However, the bottom line was flat on a year-over-year basis.
Total revenue of $1.03 billion also missed the Zacks Consensus Estimate of $1.08 billion by 4.6%. Sales however increased 8% from the prior-year quarter.
Segment Details
Aggregates
Revenues increased 3% year over year to $818 million. Freight-adjusted revenues also inched up 3% year over year to $631 million.
Aggregates shipments (volumes) decreased 2% due to severe wet weather conditions and flooding in May and June, leading to a slowdown in construction activity. Aggregates segment gross profit was $253 million, down $1 million year over year.
Non-Aggregates
Revenues at the Asphalt Mix segment were $175.8 million, up 23.7% owing to a 16% increase in volumes. Asphalt segment gross profit was $29 million, down by $2 million year over year.
Total revenue at the Concrete segment was $105.2 million, up 29.6% year over year. Concrete segment gross profit was $9 million in the quarter, down by $3 million from the prior-year quarter. Shipments increased 21% from the prior-year quarter driven by increased volumes in most of the company's concrete markets.
Total revenue at the Calcium segment was $1.9 million, reflecting a decrease of 20.8% from the prior-year quarter. The segment reported gross profit of $0.6 million, down by $0.5 million from the prior-year quarter.
Vulcan Materials Company Price, Consensus and EPS Surprise
Adjusted gross margin of 32.6% fell 330 basis points (bps) in the second quarter. Adjusted EBITDA increased 2.9% year over year to $287.7 million.
Selling, Administrative and General expenses were $83 million, flat year over year.
Financials
As of Mar 31, 2017, cash and cash equivalents were $1.12 billion, up from $259 million at the end of 2016. During the second quarter, the company returned $44 million to shareholders through dividends and share repurchases. Total debt at the end of the second quarter was $3.4 billion.
2017 Guidance Updated
Adjusted EBITDA is projected in the range of $1.05 billion to $1.13 billion, lower than $1.125–$1.225 billion expected earlier.
Aggregates shipments are now expected between 182 and 187 million tons.
Asphalt, Concrete and Calcium gross profit growth is still anticipated at around 15%.
Core capital spending is still estimated at approximately $300 million to support increased level of shipments and bring down production costs and boost operating efficiencies.
Masco Corporation’s (MAS - Free Report) adjusted earnings of 60 cents per share in second-quarter 2017 were in line with the Zacks Consensus Estimate. Adjusted earnings increased 30.4% year over year.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the third quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.3% and 5.2%, respectively.
PulteGroup Inc.’s (PHM - Free Report) second-quarter 2017 adjusted earnings of 47 cents per share beat the Zacks Consensus Estimate of 45 cents by 4.4%. Also, quarterly earnings reflected a 27% jump from the year-ago quarter’s adjusted figure of 37 cents.
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Vulcan Materials (VMC) Q2 Earnings Miss, Shipments Decline
Vulcan Materials Company’s (VMC - Free Report) second-quarter 2017 adjusted earnings of 90 cents per share missed the Zacks Consensus Estimate of $1.22 by 26.2%. However, the bottom line was flat on a year-over-year basis.
Total revenue of $1.03 billion also missed the Zacks Consensus Estimate of $1.08 billion by 4.6%. Sales however increased 8% from the prior-year quarter.
Segment Details
Aggregates
Revenues increased 3% year over year to $818 million. Freight-adjusted revenues also inched up 3% year over year to $631 million.
Aggregates shipments (volumes) decreased 2% due to severe wet weather conditions and flooding in May and June, leading to a slowdown in construction activity. Aggregates segment gross profit was $253 million, down $1 million year over year.
Non-Aggregates
Revenues at the Asphalt Mix segment were $175.8 million, up 23.7% owing to a 16% increase in volumes. Asphalt segment gross profit was $29 million, down by $2 million year over year.
Total revenue at the Concrete segment was $105.2 million, up 29.6% year over year. Concrete segment gross profit was $9 million in the quarter, down by $3 million from the prior-year quarter. Shipments increased 21% from the prior-year quarter driven by increased volumes in most of the company's concrete markets.
Total revenue at the Calcium segment was $1.9 million, reflecting a decrease of 20.8% from the prior-year quarter. The segment reported gross profit of $0.6 million, down by $0.5 million from the prior-year quarter.
Vulcan Materials Company Price, Consensus and EPS Surprise
Vulcan Materials Company Price, Consensus and EPS Surprise | Vulcan Materials Company Quote
Operating Highlights
Adjusted gross margin of 32.6% fell 330 basis points (bps) in the second quarter. Adjusted EBITDA increased 2.9% year over year to $287.7 million.
Selling, Administrative and General expenses were $83 million, flat year over year.
Financials
As of Mar 31, 2017, cash and cash equivalents were $1.12 billion, up from $259 million at the end of 2016. During the second quarter, the company returned $44 million to shareholders through dividends and share repurchases. Total debt at the end of the second quarter was $3.4 billion.
2017 Guidance Updated
Adjusted EBITDA is projected in the range of $1.05 billion to $1.13 billion, lower than $1.125–$1.225 billion expected earlier.
Aggregates shipments are now expected between 182 and 187 million tons.
Asphalt, Concrete and Calcium gross profit growth is still anticipated at around 15%.
Core capital spending is still estimated at approximately $300 million to support increased level of shipments and bring down production costs and boost operating efficiencies.
Zacks Rank & Peer Releases
Vulcan Materials carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masco Corporation’s (MAS - Free Report) adjusted earnings of 60 cents per share in second-quarter 2017 were in line with the Zacks Consensus Estimate. Adjusted earnings increased 30.4% year over year.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the third quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.3% and 5.2%, respectively.
PulteGroup Inc.’s (PHM - Free Report) second-quarter 2017 adjusted earnings of 47 cents per share beat the Zacks Consensus Estimate of 45 cents by 4.4%. Also, quarterly earnings reflected a 27% jump from the year-ago quarter’s adjusted figure of 37 cents.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>