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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q4
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Valmont Industries, Inc. (VMI - Free Report) registered profits of $26.8 million or $1.25 per share in fourth-quarter 2021, down from $35.8 million or $1.68 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $2.73 per share in the reported quarter that beat the Zacks Consensus Estimate of $2.65.
Revenues in the quarter were $963.3 million, up 20.7% year over year. The figure also surpassed the Zacks Consensus Estimate of $866.5 million. Sales were driven by the company’s pricing actions and strong market demand. It witnessed growth across all segments led by significantly higher sales in the Irrigation unit.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Sales in the Engineered Support Structures segment increased 14% year over year to $291.9 million in the reported quarter. This was led by favorable pricing and increased volumes of wireless communication products.
Sales in the Utility Support Structures segment rose 19.5% year over year to $324 million. The upside was driven by higher pricing and higher sales of solar tracker solutions led by utilities' continued investments in grid modernization and renewable energy markets.
Sales in the Coatings segment increased 9.9% year over year to $98.2 million, led by higher average selling prices and sales from the new greenfield facility in Pittsburgh, PA— which started operations last year.
Agriculture-Related
Sales in the Irrigation unit amounted to $276.8 million, up 38.9% year over year on higher average selling prices, increased volumes across all markets, particularly North America and Brazil, and higher technology sales. Sales in North America were $150.5 million, up 55.1% year over year, led by favorable pricing and higher volumes.
International irrigation sales increased 23.5% year over year to $126.3 million.
FY21 Results
Earnings (as reported) for full-year 2021 were $9.1 per share compared with $6.57 per share a year ago. Net sales rose 20.9% year over year to around $3,501.6 million.
Financial Position
Valmont ended 2021 with cash and cash equivalents of $177.2 million, down 55.8% year over year. Long-term debt stood at $947.1 million, up 30% year over year.
Cash flows from operating activities were $65.9 million for the year (as of Dec 25, 2021), down from $316.3 million for the same period a year ago (as of Dec 26, 2020).
Outlook
Valmont expects net sales of $3.8-$4 billion for 2022, suggesting an increase of 9-14% year over year. It expects earnings per share in the range of $11.55-$12.30 for the year.
Valmont also anticipates capital expenditures in the range of $110-$120 million for 2022.
Price Performance
The company’s shares have declined 4.5% in the past year compared with a 28.1% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Valmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 54.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 7.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.9%. ALB has rallied around 26.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 51.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 7.1% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 36.6% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 44.4% over a year. The company carries a Zacks Rank #2.
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Valmont (VMI) Earnings & Revenues Surpass Estimates in Q4
Valmont Industries, Inc. (VMI - Free Report) registered profits of $26.8 million or $1.25 per share in fourth-quarter 2021, down from $35.8 million or $1.68 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $2.73 per share in the reported quarter that beat the Zacks Consensus Estimate of $2.65.
Revenues in the quarter were $963.3 million, up 20.7% year over year. The figure also surpassed the Zacks Consensus Estimate of $866.5 million. Sales were driven by the company’s pricing actions and strong market demand. It witnessed growth across all segments led by significantly higher sales in the Irrigation unit.
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 increased 14% year over year to $291.9 million in the reported quarter. This was led by favorable pricing and increased volumes of wireless communication products.
Sales in the Utility Support Structures segment rose 19.5% year over year to $324 million. The upside was driven by higher pricing and higher sales of solar tracker solutions led by utilities' continued investments in grid modernization and renewable energy markets.
Sales in the Coatings segment increased 9.9% year over year to $98.2 million, led by higher average selling prices and sales from the new greenfield facility in Pittsburgh, PA— which started operations last year.
Agriculture-Related
Sales in the Irrigation unit amounted to $276.8 million, up 38.9% year over year on higher average selling prices, increased volumes across all markets, particularly North America and Brazil, and higher technology sales. Sales in North America were $150.5 million, up 55.1% year over year, led by favorable pricing and higher volumes.
International irrigation sales increased 23.5% year over year to $126.3 million.
FY21 Results
Earnings (as reported) for full-year 2021 were $9.1 per share compared with $6.57 per share a year ago. Net sales rose 20.9% year over year to around $3,501.6 million.
Financial Position
Valmont ended 2021 with cash and cash equivalents of $177.2 million, down 55.8% year over year. Long-term debt stood at $947.1 million, up 30% year over year.
Cash flows from operating activities were $65.9 million for the year (as of Dec 25, 2021), down from $316.3 million for the same period a year ago (as of Dec 26, 2020).
Outlook
Valmont expects net sales of $3.8-$4 billion for 2022, suggesting an increase of 9-14% year over year. It expects earnings per share in the range of $11.55-$12.30 for the year.
Valmont also anticipates capital expenditures in the range of $110-$120 million for 2022.
Price Performance
The company’s shares have declined 4.5% in the past year compared with a 28.1% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Valmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 54.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 7.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.9%. ALB has rallied around 26.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 51.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 7.1% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 36.6% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 44.4% over a year. The company carries a Zacks Rank #2.