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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q3
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Valmont Industries, Inc. (VMI - Free Report) registered profits of $39.3 million or $1.84 per share in third-quarter 2020, up from $38 million or $1.75 per share in the year-ago quarter. Barring one-time items, adjusted earnings were $1.99 per share for the reported quarter that beat the Zacks Consensus Estimate of $1.71.
Revenues in the quarter were $734 million, up 6.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $690.7 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Engineered Support Structures segment fell 4.6% year over year to $255.7 million. Per the company, higher sales of wireless communication products were offset by lower volumes of lighting and traffic products, and reduced sales of Access Systems.
Sales in the Utility Support Structures segment rose 33.9% year over year to $274.4 million due to higher sales in the international businesses.
Sales in the Coatings segment declined 5.5% year over year to $87.9 million as the benefits of favorable pricing and higher internal volumes were offset by lower external volumes in North American markets.
Agriculture-Related
Sales in the Irrigation unit amounted to $139.2 million, down 3.4% year over year. Sales in North America were $75.8 million, down 8.5% year over year.
International irrigation sales rose 3.3% year over year to $63.4 million.
Financial Position
Valmont ended the third quarter with cash and cash equivalents of $443.1 million, up 35.4% year over year. Long-term debt stood at $779.8 million, up 1.9% year over year.
Cash flows from operating activities were $273 million for the year-to-date period (as of Sep 26, 2020), up from $239.2 million for the same period a year ago (as of Sep 28, 2019).
Outlook
Valmont expects net sales of $715-735 million for fourth-quarter 2020. It also expects operating profit margins of 6.5-7.5% for the fourth quarter.
Valmont anticipates revenues from the Irrigation segment to increase around 12-15% year over year for the fourth quarter.
Price Performance
The company’s shares have inched up 0.5% in the past year against the industry’s 31.1% decline.
Eldorado Gold has an expected earnings growth rate of 2,400% for 2020. The company’s shares have surged 77.3% in the past year.
Agnico Eagle has an expected earnings growth rate of 104.1% for 2020. Its shares have returned 54% in the past year.
Barrick has an expected earnings growth rate of 148% for 2020. The company’s shares have gained 64.9% in the past year.
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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q3
Valmont Industries, Inc. (VMI - Free Report) registered profits of $39.3 million or $1.84 per share in third-quarter 2020, up from $38 million or $1.75 per share in the year-ago quarter. Barring one-time items, adjusted earnings were $1.99 per share for the reported quarter that beat the Zacks Consensus Estimate of $1.71.
Revenues in the quarter were $734 million, up 6.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $690.7 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
Segment Highlights
Infrastructure-Related
Sales in the Engineered Support Structures segment fell 4.6% year over year to $255.7 million. Per the company, higher sales of wireless communication products were offset by lower volumes of lighting and traffic products, and reduced sales of Access Systems.
Sales in the Utility Support Structures segment rose 33.9% year over year to $274.4 million due to higher sales in the international businesses.
Sales in the Coatings segment declined 5.5% year over year to $87.9 million as the benefits of favorable pricing and higher internal volumes were offset by lower external volumes in North American markets.
Agriculture-Related
Sales in the Irrigation unit amounted to $139.2 million, down 3.4% year over year. Sales in North America were $75.8 million, down 8.5% year over year.
International irrigation sales rose 3.3% year over year to $63.4 million.
Financial Position
Valmont ended the third quarter with cash and cash equivalents of $443.1 million, up 35.4% year over year. Long-term debt stood at $779.8 million, up 1.9% year over year.
Cash flows from operating activities were $273 million for the year-to-date period (as of Sep 26, 2020), up from $239.2 million for the same period a year ago (as of Sep 28, 2019).
Outlook
Valmont expects net sales of $715-735 million for fourth-quarter 2020. It also expects operating profit margins of 6.5-7.5% for the fourth quarter.
Valmont anticipates revenues from the Irrigation segment to increase around 12-15% year over year for the fourth quarter.
Price Performance
The company’s shares have inched up 0.5% in the past year against the industry’s 31.1% decline.
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Eldorado Gold Corporation (EGO - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eldorado Gold has an expected earnings growth rate of 2,400% for 2020. The company’s shares have surged 77.3% in the past year.
Agnico Eagle has an expected earnings growth rate of 104.1% for 2020. Its shares have returned 54% in the past year.
Barrick has an expected earnings growth rate of 148% for 2020. The company’s shares have gained 64.9% in the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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