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Valmont (VMI) Up 2.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Valmont Industries (VMI - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Valmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Valmont’s Q4 Earnings Miss, Sales Beat Estimates
Valmont 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 its products.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Valmont has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Valmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Valmont (VMI) Up 2.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Valmont Industries (VMI - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Valmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Valmont’s Q4 Earnings Miss, Sales Beat Estimates
Valmont 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 its products.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Valmont has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Valmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.