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Valmont (VMI) Raises Dividend, Reauthorizes Share Repurchase

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Valmont Industries, Inc. (VMI - Free Report) , recently announced an increase in its quarterly dividend. It also reauthorized its existing share repurchase program.

The $400 million reauthorization of share repurchase will come into effect once the current remaining authorization of $81 million (as of Dec 31, 2022) is completed. The company plans to buy back its shares from time to time, either through open market purchases or through privately negotiated transactions. These purchases, which have no expiration date, will be implemented by using VMI’s available cash balances and ongoing cash flows but will be subjected to market and economic conditions. However, the company is not obligated to repurchase its shares and can terminate this program anytime. VMI has roughly 21.35 million shares outstanding.

The company’s board also approved the hike in its quarterly dividend to 60 cents per share or $2.4 per share on an annual basis, which is a 9% increase from the prior payout of 55 cents per share. The dividend is payable on Apr 14, 2023, to shareholders on record as of Mar 31, 2023.

The company remains committed to growing its business and returning cash to its shareholders, as reauthorizing its repurchase program has provided the company additional flexibility to leverage its performance.  The company stated that the increase in dividend is reflective of its earnings growth and that it will remain focused on creating shareholder value as the business strengthens further.

Shares of Valmont have gained 51.3% over the past year compared with a 28.3% rise of its industry.

Zacks Investment Research
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Valmont expects its sales to grow in the range of 4-7% in 2023. It also predicts its adjusted earnings per share to be in the range of $15.35-$15.90 and projects capital expenditure to be between $105 million and $125 million for 2023. The company also expects higher inflation, moderate currency movements and stabilized raw material costs this year.

 

Valmont Industries, Inc. Price and Consensus

Valmont Industries, Inc. Price and Consensus

Zacks Rank & Key Picks

Valmont currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks to consider in the industrial products space are Encore Wire Corporation , Belden Inc. (BDC - Free Report) , and AGCO Corporation (AGCO - Free Report) . AGCO and BDC carry a Zacks Rank #2 (Buy), while WIRE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Encore’s shares have gained 71.8% in the past year. The Zacks Consensus Estimate for WIRE’s current-year earnings has been revised 28% upward in the past 60 days.

WIRE topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 146.9% on average.

Belden’s shares have gained 51.2% 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 2.2% upward in the past 60 days. The company has an earnings growth rate of 9% 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.
 

 


 


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