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's (VMI) Earnings and Revenues Beat Estimates in Q3
Read MoreHide Full Article
Valmont Industries, Inc. (VMI - Free Report) registered profits of $72.1 million or $3.34 per share in third-quarter 2022, up from $51.7 million or $2.40 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.49 per share in the reported quarter, beating the Zacks Consensus Estimate of $3.46.
Revenues in the quarter were $1,097.4 million, up around 26% year over year. The figure surpassed the Zacks Consensus Estimate of $1,054.5 million. Sales were driven by favorable pricing and higher volumes. The company witnessed strong demand for its products and solutions across infrastructure and agriculture markets in the quarter.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Infrastructure segment increased around 23% year over year to $778.4 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for the renewable energy product line. The ConcealFab acquisition also contributed to the growth.
Sales in the Agriculture segment rose roughly 36% year over year to $327.3 million. The uptick was driven by increased average selling prices of irrigation equipment and higher volumes, partly masked by reduced project sales to Egypt.
Financial Position
Valmont ended the quarter with cash and cash equivalents of $166.2 million, down around 2% year over year. Long-term debt stood at around $935.1 million, up around 4% year over year.
Cash flows from operating activities were $183.7 million for 39 weeks ended Sep 24, 2022, up from $61.8 million for the same period a year ago (as of Sep 25, 2021).
The company returned $22.4 million to shareholders through dividends and share buybacks during the quarter.
Outlook
Valmont updated its outlook for 2022. It expects net sales growth roughly 22% for 2022 compared with 20-21% expected earlier. The company expects earnings per share (EPS) in the range of $12.95-$13.30 for the year, compared with $12.90-$13.30 expected earlier. Adjusted EPS is now projected in the band of $13.65-$14.00, compared with the prior forecast of $13.60-$14.00.
Valmont now projects capital expenditures in the range of $95-$105 million for 2022.
For 2023, the company expects sales growth of 6-9% and EPS growth of 11-15%. It anticipated the favorable market conditions and strong demand to continue next year.
Price Performance
The company’s shares have increased 27.5% in the past year compared with a 17.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Albemarle Corporation (ALB - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 38% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% 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 24.2%, on average. ALB has gained around 2% in a year.
Reliance Steel, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 24% in a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Valmont's (VMI) Earnings and Revenues Beat Estimates in Q3
Valmont Industries, Inc. (VMI - Free Report) registered profits of $72.1 million or $3.34 per share in third-quarter 2022, up from $51.7 million or $2.40 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.49 per share in the reported quarter, beating the Zacks Consensus Estimate of $3.46.
Revenues in the quarter were $1,097.4 million, up around 26% year over year. The figure surpassed the Zacks Consensus Estimate of $1,054.5 million. Sales were driven by favorable pricing and higher volumes. The company witnessed strong demand for its products and solutions across infrastructure and agriculture markets in the quarter.
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 around 23% year over year to $778.4 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for the renewable energy product line. The ConcealFab acquisition also contributed to the growth.
Sales in the Agriculture segment rose roughly 36% year over year to $327.3 million. The uptick was driven by increased average selling prices of irrigation equipment and higher volumes, partly masked by reduced project sales to Egypt.
Financial Position
Valmont ended the quarter with cash and cash equivalents of $166.2 million, down around 2% year over year. Long-term debt stood at around $935.1 million, up around 4% year over year.
Cash flows from operating activities were $183.7 million for 39 weeks ended Sep 24, 2022, up from $61.8 million for the same period a year ago (as of Sep 25, 2021).
The company returned $22.4 million to shareholders through dividends and share buybacks during the quarter.
Outlook
Valmont updated its outlook for 2022. It expects net sales growth roughly 22% for 2022 compared with 20-21% expected earlier. The company expects earnings per share (EPS) in the range of $12.95-$13.30 for the year, compared with $12.90-$13.30 expected earlier. Adjusted EPS is now projected in the band of $13.65-$14.00, compared with the prior forecast of $13.60-$14.00.
Valmont now projects capital expenditures in the range of $95-$105 million for 2022.
For 2023, the company expects sales growth of 6-9% and EPS growth of 11-15%. It anticipated the favorable market conditions and strong demand to continue next year.
Price Performance
The company’s shares have increased 27.5% in the past year compared with a 17.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Albemarle Corporation (ALB - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 38% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% 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 24.2%, on average. ALB has gained around 2% in a year.
Reliance Steel, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 24% in a year.