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Vulcan's (VMC) Q1 Earnings Beat, Aggregates Shipments Rise

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Vulcan Materials Company’s (VMC - Free Report) earnings and revenues surpassed the Zacks Consensus Estimate in the first quarter of 2018. Revenues and earnings improved year over year, despite adverse weather conditions and higher-than-anticipated energy costs.

Vulcan’s reported adjusted earnings of 44 cents per share in first-quarter 2018, surpassing the Zacks Consensus Estimate of 22 cents by 100%. Also, the bottom line increased about 29.4% on a year-over-year basis.

Total revenues of $854 million outpaced the Zacks Consensus Estimate of $798.6 million by 7%. The top line increased 9% from the prior-year quarter.

Segments in Detail

Aggregates

Revenues increased 7.6% year over year to $699.7 million. Freight-adjusted revenues rose $33 million to $529 million.

Aggregate shipments (volumes) were up 6% year over year. In the quarter under review, shipments in Arizona, California, Florida and coastal Texas experienced double-digit gains on the back of solid demand growth and the start of some large projects.  However, shipment rates lagged in North Texas due to wet weather.

Non-Aggregates

Revenues in the Asphalt Mix segment were $103.8 million, up 8.4%. Asphalt segment gross profit was $246 million, down $8 million year over year. Shipments were in line with the prior-year quarter’s figure, as cold and wet weather in key markets limited paving activity. 

Total revenues in the Concrete segment were $100.9 million, up 13.6% year over year. Gross profit was $10.3 million, in line with the prior-year quarter. Shipments increased 3% from the prior-year quarter.

Total revenues in the Calcium segment were $1.9 million, up 3% from the prior-year quarter. The segment reported gross profit of $547 million, down 24.3% from the prior-year quarter’s tally.

Operating Highlights

Adjusted gross margin of 22% fell 160 basis points (bps) in the first quarter. Also, adjusted EBITDA was up 12% year over year to $168 million.

Selling, Administrative and General expenses were $78 million, down $4 million year over year.



Vulcan Materials Company Price, Consensus and EPS Surprise

 

 

Financials

As of Mar 31, 2018, cash and cash equivalents were $38.1 million down from $141.6 million at the end of 2017.

2018 Guidance

The company expects earnings from continuing operations between $4.00 and $4.65 per share. Adjusted EBITDA is envisioned in the range of $1.15-$1.25 billion. Aggregates shipments from Aggregates USA operations are expected at roughly 7 million tons.

Zacks Rank

Vulcan carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

PulteGroup Inc. (PHM - Free Report) reported impressive first-quarter 2018 results, with earnings and revenues beating the Zacks Consensus Estimate.

NVR, Inc. (NVR - Free Report) also reported solid first-quarter 2018 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Lennar Corporation (LEN - Free Report) surpassed earnings and revenues expectations in the first quarter of fiscal 2018. Its top and bottom line grew considerably on higher orders along with improved gross margins and SG&A expenses.

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