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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q1
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Valmont Industries, Inc. (VMI - Free Report) registered profits of $55 million or $2.57 per share in first-quarter 2021, up from $42.9 million or $1.99 per share in the year-ago quarter. Earnings per share in the reported quarter beat the Zacks Consensus Estimate of $2.12.
Revenues in the quarter were $774.9 million, up 14.9% year over year. The figure also surpassed the Zacks Consensus Estimate of $754.6 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Engineered Support Structures segment fell 3.6% year over year to $222.3 million. Per the company, lower volumes in transportation markets were partly offset by favorable currency impacts, favorable pricing and higher sales of wireless communication products and components.
Sales in the Utility Support Structures segment rose 12.3% year over year to $253.1 million. The upside was driven by higher volumes resulting from higher demand for renewable energy generation and utilities’ investments in grid resiliency.
Sales in the Coatings segment increased 5.9% year over year at $93.3 million as benefits of favourable pricing and higher internal volumes were partly offset by lower external volumes in North American markets due to disruptions associated with the pandemic and winter weather.
Agriculture-Related
Sales in the Irrigation unit amounted to $229.7 million, up 46.5% year over year on higher volumes across most markets. This was partly offset by unfavorable currency impacts. Sales in North America were $122.8 million, up 15.2% year over year led by higher volumes across all irrigation product lines.
International irrigation sales more than doubled year over year to $106.9 million.
Financial Position
Valmont ended first-quarter 2021 with cash and cash equivalents of $391.5 million, up 32.9% year over year. Long-term debt stood at $729.6 million, almost flat year over year.
Cash flows from operating activities were $33.2 million at the end of the first quarter (as of Mar 27, 2021), down from $62.4 million for the same period a year ago (as of Mar 28, 2020).
Outlook
Valmont expects net sales of $805-$830 million for second-quarter 2021. It also expects operating profit margins of 9.5-10.5% for the second quarter.
For full-year 2021, it expects an increase in net sales of 9-14% and an increase in irrigation segment revenues of 27-30% year over year. The company also expects earnings of $9.00-$9.70 per share for 2021.
Price Performance
The company’s shares have gained 105.1% in the past year compared with 75.2% rise of the industry.
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of roughly 105% for the current fiscal. The company’s shares have surged 143% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 171% for the current fiscal. The company’s shares have gained 112.5% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 276.1% in the past year. It currently flaunts a Zacks Rank #1.
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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q1
Valmont Industries, Inc. (VMI - Free Report) registered profits of $55 million or $2.57 per share in first-quarter 2021, up from $42.9 million or $1.99 per share in the year-ago quarter. Earnings per share in the reported quarter beat the Zacks Consensus Estimate of $2.12.
Revenues in the quarter were $774.9 million, up 14.9% year over year. The figure also surpassed the Zacks Consensus Estimate of $754.6 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
Segment Highlights
Infrastructure-Related
Sales in the Engineered Support Structures segment fell 3.6% year over year to $222.3 million. Per the company, lower volumes in transportation markets were partly offset by favorable currency impacts, favorable pricing and higher sales of wireless communication products and components.
Sales in the Utility Support Structures segment rose 12.3% year over year to $253.1 million. The upside was driven by higher volumes resulting from higher demand for renewable energy generation and utilities’ investments in grid resiliency.
Sales in the Coatings segment increased 5.9% year over year at $93.3 million as benefits of favourable pricing and higher internal volumes were partly offset by lower external volumes in North American markets due to disruptions associated with the pandemic and winter weather.
Agriculture-Related
Sales in the Irrigation unit amounted to $229.7 million, up 46.5% year over year on higher volumes across most markets. This was partly offset by unfavorable currency impacts. Sales in North America were $122.8 million, up 15.2% year over year led by higher volumes across all irrigation product lines.
International irrigation sales more than doubled year over year to $106.9 million.
Financial Position
Valmont ended first-quarter 2021 with cash and cash equivalents of $391.5 million, up 32.9% year over year. Long-term debt stood at $729.6 million, almost flat year over year.
Cash flows from operating activities were $33.2 million at the end of the first quarter (as of Mar 27, 2021), down from $62.4 million for the same period a year ago (as of Mar 28, 2020).
Outlook
Valmont expects net sales of $805-$830 million for second-quarter 2021. It also expects operating profit margins of 9.5-10.5% for the second quarter.
For full-year 2021, it expects an increase in net sales of 9-14% and an increase in irrigation segment revenues of 27-30% year over year. The company also expects earnings of $9.00-$9.70 per share for 2021.
Price Performance
The company’s shares have gained 105.1% in the past year compared with 75.2% rise of the industry.
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of roughly 105% for the current fiscal. The company’s shares have surged 143% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 171% for the current fiscal. The company’s shares have gained 112.5% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 276.1% in the past year. It currently flaunts a Zacks Rank #1.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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