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
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.
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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
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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