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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q2
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Valmont Industries, Inc. (VMI - Free Report) registered profits of $76.1 million or $3.53 per share in second-quarter 2022, up from $62.1 million or $2.89 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.70 per share in the reported quarter, beating the Zacks Consensus Estimate of $3.29.
Revenues in the quarter were $1,135.5 million, up 26.9% year over year. The figure surpassed the Zacks Consensus Estimate of $992.1 million. Sales were driven by favorable pricing and higher volumes.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Infrastructure segment increased 23.9% year over year to $765 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for renewable energy, telecommunication and Transmission, Distribution and Substation products.
Sales in the Agriculture segment rose 34% year over year to $377.8 million. The uptick was driven by increased average selling prices of irrigation equipment globally and higher volumes, especially in North America and Brazil.
Financial Position
Valmont ended the second quarter with cash and cash equivalents of $154.6 million, down 22.4% year over year. Long-term debt stood at around $995.6 million, up 15.6% year over year.
Cash flows from operating activities were $68 million for 26 weeks ended Jun 25, 2022, down from $70.2 million for the same period a year ago (as of Jun 26, 2021).
The company returned $21.5 million to shareholders through dividends and share buybacks during the quarter.
Outlook
Valmont revised its outlook for 2022. It expects net sales growth for 2022 in the range of 20-21% year over year, up from 11-17% expected earlier. The company expects earnings per share (EPS) in the range of $12.90-$13.30 for the year, up from $12.30-$12.80 expected earlier. Adjusted EPS are now projected in the band of $13.60-$14, up from the prior forecast of $13-$13.50.
Valmont projects capital expenditures in the range of $110-$120 million for 2022.
The company raised its outlook due to strong first-half results and several otherpositive drivers. These include a record backlog of $2 billion, reflecting continued strong, global market drivers across its businesses. The company is well positioned to drive sustainable, profitable growth and deliver long-term value to its shareholders.
Price Performance
The company’s shares have increased 8.1% in the past year compared with a 12.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 21.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 18.5% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% 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 30.7% over a year.
Sociedad has a projected earnings growth rate of 422.4% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 75.3% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 94.3% in a year. The company sports a Zacks Rank #1.
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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q2
Valmont Industries, Inc. (VMI - Free Report) registered profits of $76.1 million or $3.53 per share in second-quarter 2022, up from $62.1 million or $2.89 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.70 per share in the reported quarter, beating the Zacks Consensus Estimate of $3.29.
Revenues in the quarter were $1,135.5 million, up 26.9% year over year. The figure surpassed the Zacks Consensus Estimate of $992.1 million. Sales were driven by favorable pricing and higher volumes.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
Segment Highlights
Sales in the Infrastructure segment increased 23.9% year over year to $765 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for renewable energy, telecommunication and Transmission, Distribution and Substation products.
Sales in the Agriculture segment rose 34% year over year to $377.8 million. The uptick was driven by increased average selling prices of irrigation equipment globally and higher volumes, especially in North America and Brazil.
Financial Position
Valmont ended the second quarter with cash and cash equivalents of $154.6 million, down 22.4% year over year. Long-term debt stood at around $995.6 million, up 15.6% year over year.
Cash flows from operating activities were $68 million for 26 weeks ended Jun 25, 2022, down from $70.2 million for the same period a year ago (as of Jun 26, 2021).
The company returned $21.5 million to shareholders through dividends and share buybacks during the quarter.
Outlook
Valmont revised its outlook for 2022. It expects net sales growth for 2022 in the range of 20-21% year over year, up from 11-17% expected earlier. The company expects earnings per share (EPS) in the range of $12.90-$13.30 for the year, up from $12.30-$12.80 expected earlier. Adjusted EPS are now projected in the band of $13.60-$14, up from the prior forecast of $13-$13.50.
Valmont projects capital expenditures in the range of $110-$120 million for 2022.
The company raised its outlook due to strong first-half results and several otherpositive drivers. These include a record backlog of $2 billion, reflecting continued strong, global market drivers across its businesses.
The company is well positioned to drive sustainable, profitable growth and deliver long-term value to its shareholders.
Price Performance
The company’s shares have increased 8.1% in the past year compared with a 12.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 21.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 18.5% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% 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 30.7% over a year.
Sociedad has a projected earnings growth rate of 422.4% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 75.3% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 94.3% in a year. The company sports a Zacks Rank #1.