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 (VMI) Earnings & Revenues Surpass Estimates in Q2
Read MoreHide Full Article
Valmont Industries, Inc. (VMI - Free Report) registered profits of $22.6 million or $1.06 per share in second-quarter 2020, down from $39.7 million or $1.82 per share in the year-ago quarter. Barring one-time items, adjusted earnings were $2.00 per share for the reported quarter, beating the Zacks Consensus Estimate of $1.47.
Revenues in the quarter were $688.8 million, down 1.7% year over year. The figure, however, surpassed the Zacks Consensus Estimate of $648.8 million. Strong growth in Utility Support Structures was more than offset by reduced sales in the Coatings segment due to the impacts of the coronavirus outbreak.
Segment Highlights
Infrastructure-Related
Sales in the Engineered Support Structures segment fell 2.1% year over year to $253.4 million due to unfavorable currency impacts of $6.1 million.
Sales in the Utility Support Structures segment rose 10.2% year over year to $231.3 million on account of substantially larger volumes from strong market demand, capacity additions and favorable pricing.
Sales in the Coatings segment declined 18.7% year over year to $80 million as higher internal volumes were more than offset by lower external volumes due to the coronavirus outbreak’s effects on end customers and temporary international facility closures.
Agriculture-Related
Sales in the Irrigation unit amounted to $150.6 million, down 3% year over year. Sales in North America were $99 million, down 3.7% year over year. Higher sales of irrigation products and pricing were offset by lower industrial tubing sales.
International irrigation sales fell 1.5% year over year to $51.6 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont ended the second quarter with cash and cash equivalents of $353.3 million, up 37.5% year over year. Long-term debt stood at $778.3 million, up 1.6% year over year.
Cash flows from operating activities were $150.7 million for the year-to-date period (as of Jun 27, 2020), up from $113.4 million for the same period a year ago (as of Jun 29, 2019).
Outlook
The company expects net sales of $680-700 million for third-quarter 2020.It also expects operating profit margins of 8-9% for the third quarter.
Valmont anticipates revenues from the Utility Support Structures segment to increase around 20% year over year for the third quarter.
Price Performance
The company’s shares have lost 14.6% in the past year compared with the industry’s 36.5% decline.
Zacks Rank & Other Stocks to Consider
Valmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Royal Gold, Inc. (RGLD - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) andHarmony Gold Mining Company Limited (HMY - Free Report) .
Royal Goldhas a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 13.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle has a projected earnings growth rate of 73.2% for the current year. The stock has gained around 30% in a year. It currently has a Zacks Rank of 1.
Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have rallied 154.8% in the past year.It is presently a Zacks #2 Ranked player.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Valmont (VMI) Earnings & Revenues Surpass Estimates in Q2
Valmont Industries, Inc. (VMI - Free Report) registered profits of $22.6 million or $1.06 per share in second-quarter 2020, down from $39.7 million or $1.82 per share in the year-ago quarter. Barring one-time items, adjusted earnings were $2.00 per share for the reported quarter, beating the Zacks Consensus Estimate of $1.47.
Revenues in the quarter were $688.8 million, down 1.7% year over year. The figure, however, surpassed the Zacks Consensus Estimate of $648.8 million. Strong growth in Utility Support Structures was more than offset by reduced sales in the Coatings segment due to the impacts of the coronavirus outbreak.
Segment Highlights
Infrastructure-Related
Sales in the Engineered Support Structures segment fell 2.1% year over year to $253.4 million due to unfavorable currency impacts of $6.1 million.
Sales in the Utility Support Structures segment rose 10.2% year over year to $231.3 million on account of substantially larger volumes from strong market demand, capacity additions and favorable pricing.
Sales in the Coatings segment declined 18.7% year over year to $80 million as higher internal volumes were more than offset by lower external volumes due to the coronavirus outbreak’s effects on end customers and temporary international facility closures.
Agriculture-Related
Sales in the Irrigation unit amounted to $150.6 million, down 3% year over year. Sales in North America were $99 million, down 3.7% year over year. Higher sales of irrigation products and pricing were offset by lower industrial tubing sales.
International irrigation sales fell 1.5% year over year to $51.6 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
Financial Position
Valmont ended the second quarter with cash and cash equivalents of $353.3 million, up 37.5% year over year. Long-term debt stood at $778.3 million, up 1.6% year over year.
Cash flows from operating activities were $150.7 million for the year-to-date period (as of Jun 27, 2020), up from $113.4 million for the same period a year ago (as of Jun 29, 2019).
Outlook
The company expects net sales of $680-700 million for third-quarter 2020.It also expects operating profit margins of 8-9% for the third quarter.
Valmont anticipates revenues from the Utility Support Structures segment to increase around 20% year over year for the third quarter.
Price Performance
The company’s shares have lost 14.6% in the past year compared with the industry’s 36.5% decline.
Zacks Rank & Other Stocks to Consider
Valmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Royal Gold, Inc. (RGLD - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) andHarmony Gold Mining Company Limited (HMY - Free Report) .
Royal Goldhas a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 13.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle has a projected earnings growth rate of 73.2% for the current year. The stock has gained around 30% in a year. It currently has a Zacks Rank of 1.
Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have rallied 154.8% in the past year.It is presently a Zacks #2 Ranked player.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>