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Valmont Industries, Inc. (VMI - Free Report) registered earnings of $1.86 per share in fourth-quarter 2022, up from $1.25 in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.57 per share in the reported quarter, lagging the Zacks Consensus Estimate of $3.59.
Revenues in the quarter were $1,131.5 million, up 17.5% year over year. The figure surpassed the Zacks Consensus Estimate of $1,056.8 million. The company’s performance in the fourth quarter was driven by strong pricing and solid demand for its products and services. Increased demand for the company’s irrigation products and technology solutions in the agricultural market also supported results. High commodity prices, global drought conditions and concerns over food securities are contributing to the demand for VMI’s products.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Infrastructure segment increased around 15% year over year to $771.3 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for the Renewable Energy and Lightening & Transportation product lines. The ConcealFab acquisition also contributed to the growth.
Sales in the Agriculture segment rose 21.1% year over year to $335.1 million. The uptick was driven by increased average selling prices of irrigation equipment and higher volumes, particularly in North America and Brazil. Higher sales of technology products and services also drove net sales in this segment.
FY22 Results
Earnings, as adjusted, in full-year 2022 were $13.82 per share compared with $10.92 reported a year ago. Net sales climbed 24.1% to $4,345.2 million.
Financials
Valmont ended the quarter with cash and cash equivalents of $185.4 million, up 4.6% year over year. Long-term debt was around $870.9 million, down roughly 8%.
Cash flows from operating activities were $326.3 million in 53 weeks ended Dec 31, 2022, up from $65.9 million for the same period a year ago (as of Dec 25, 2022).
The company returned $20 million to shareholders through share buybacks during the quarter.
Outlook
For 2023, the company expects sales growth of 4-7% and adjusted EPS to be in the range of $15.35-$15.90. It also projects its capital expenditures to be in the band of $105-$125 million for 2023. The company expects higher inflation and moderate currency movements, and stabilized raw material costs in 2023.
Price Performance
The company’s shares have surged 48.7% in the past year compared with a 29.5% rise of the industry.
Belden’s shares have gained 55.5% in the past year. The Zacks Consensus Estimate for BDC’s current-year earnings has been revised 6.4% upward in the past 60 days. The company has an earnings growth rate of 6.7% for the current year.
BDC topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 12.6% on average.
AGCO’s shares have gained 17.1% in the past year. The Zacks Consensus Estimate for AGCO’s current-year earnings has been revised 1.3% upward in the past 60 days. The company has an earnings growth rate of 8% for the current year.
AGCO topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 13.4% on average.
Apogee’s shares have gained 4.7% in the past year. The company has an earnings growth rate of 59.7% for the current year.
APOG topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 46% on average.
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Valmont's (VMI) Q4 Earnings Miss, Sales Beat Estimates
Valmont Industries, Inc. (VMI - Free Report) registered earnings of $1.86 per share in fourth-quarter 2022, up from $1.25 in the year-ago quarter.
Barring one-time items, adjusted earnings were $3.57 per share in the reported quarter, lagging the Zacks Consensus Estimate of $3.59.
Revenues in the quarter were $1,131.5 million, up 17.5% year over year. The figure surpassed the Zacks Consensus Estimate of $1,056.8 million. The company’s performance in the fourth quarter was driven by strong pricing and solid demand for its products and services. Increased demand for the company’s irrigation products and technology solutions in the agricultural market also supported results. High commodity prices, global drought conditions and concerns over food securities are contributing to the demand for VMI’s products.
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 15% year over year to $771.3 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for the Renewable Energy and Lightening & Transportation product lines. The ConcealFab acquisition also contributed to the growth.
Sales in the Agriculture segment rose 21.1% year over year to $335.1 million. The uptick was driven by increased average selling prices of irrigation equipment and higher volumes, particularly in North America and Brazil. Higher sales of technology products and services also drove net sales in this segment.
FY22 Results
Earnings, as adjusted, in full-year 2022 were $13.82 per share compared with $10.92 reported a year ago. Net sales climbed 24.1% to $4,345.2 million.
Financials
Valmont ended the quarter with cash and cash equivalents of $185.4 million, up 4.6% year over year. Long-term debt was around $870.9 million, down roughly 8%.
Cash flows from operating activities were $326.3 million in 53 weeks ended Dec 31, 2022, up from $65.9 million for the same period a year ago (as of Dec 25, 2022).
The company returned $20 million to shareholders through share buybacks during the quarter.
Outlook
For 2023, the company expects sales growth of 4-7% and adjusted EPS to be in the range of $15.35-$15.90. It also projects its capital expenditures to be in the band of $105-$125 million for 2023. The company expects higher inflation and moderate currency movements, and stabilized raw material costs in 2023.
Price Performance
The company’s shares have surged 48.7% in the past year compared with a 29.5% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider in the industrial products space are Belden Inc. (BDC - Free Report) , AGCO Corporation (AGCO - Free Report) and Apogee Enterprises, Inc. (APOG - Free Report) . AGCO and APOG both carry a Zacks Rank #2 (Buy), while BDC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Belden’s shares have gained 55.5% in the past year. The Zacks Consensus Estimate for BDC’s current-year earnings has been revised 6.4% upward in the past 60 days. The company has an earnings growth rate of 6.7% for the current year.
BDC topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 12.6% on average.
AGCO’s shares have gained 17.1% in the past year. The Zacks Consensus Estimate for AGCO’s current-year earnings has been revised 1.3% upward in the past 60 days. The company has an earnings growth rate of 8% for the current year.
AGCO topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 13.4% on average.
Apogee’s shares have gained 4.7% in the past year. The company has an earnings growth rate of 59.7% for the current year.
APOG topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 46% on average.