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Valmont (VMI) And Ericsson Wrap Up the Buyout of ConcealFab

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Valmont Industries Inc. (VMI - Free Report) announced the closing of its acquisition of a majority interest in ConcealFab. The latter is an industry leader in 5G infrastructure and passive intermodulation (PIM) mitigation solutions. Ericsson, a global leader in 5G technology, also reinvested its ConcealFab equity and holds a minority stake in ConcealFab.

The buyout boosts Valmont’s telecom strategy by integrating innovative 5G infrastructure and PIM mitigation solutions into its advanced infrastructure portfolio.

ConcealFab, founded in 2007, has been recognized as one of the rapidly-growing companies in the telecom industry. Its first-to-market innovative solutions, customer-centric strategy and well-known partnerships with wireless operators, utilities and major OEMs have led to its rapid growth. These factors are expected to continue supporting future expansion.

The buyout provides the opportunity to immediately accelerate expansion in the concealment, PIM solutions, and RF markets, combined with Valmont and Ericsson’s portfolio of products, services and manufacturing footprint.

Shares of Valmont have dropped 0.3% in the past year against a 20.2% rise of the industry.

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Valmont, in its last earnings call, revised its outlook for 2022. It expects net sales growth for 2022 in the range of 11-17% year over year, up from 9-14% expected earlier. The company expects earnings per share (EPS) in the range of $12.30-$12.80 for the year, up from $11.55-$12.30 expected earlier. Adjusted EPS are now projected in the band of $13-$13.50, up from the prior forecast of $12.25-$13.

The company raised its outlook due to several positive drivers. Valmont continued to execute from a position of strength to drive growth and performance, with significant momentum led by strong, global market drivers across its businesses. The company entered the second quarter with a record backlog, indicating strong market demand. It also continues to execute pricing strategies to manage inflation.

 

Zacks Rank & Other Key Picks

Valmont currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and Cabot Corporation (CBT - Free Report) .

Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 11.7% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutrien has a projected earnings growth rate of 163.2% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 27.5% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 50.6% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 5.2% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 15.2% over a year.


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