We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vulcan Materials Company (VMC - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. On a year-over-year basis, earnings increased, but revenues declined due to lower Aggregate shipments.
VMC’s shares fell 4.6% in the pre-market trading session on Aug 6, after the earnings release. Investors’ sentiments are likely to have been hurt by the slashed 2024 net earnings outlook.
Inside the Headlines
Adjusted earnings of $2.35 per share missed the consensus mark of $2.47 by 4.9% but increased 2.6% from the year-ago level of $2.29.
Vulcan Materials Company Price, Consensus and EPS Surprise
Total revenues of $2.01 billion missed the consensus mark of $2.03 billion by 1% and declined 4.7% year over year.
Segments in Detail
Aggregates
Revenues from the segment were up 2.1% year over year to $1.61 billion. Aggregate shipments (volumes) declined 5% year over year to 60.1 million tons. We expected Aggregate revenues of $1.68 billion on 62.2 million tons of shipments.
Freight-adjusted average sales price rose 12.2% to $21.00 per ton from the prior-year level of $18.71. Our estimate for the same was pegged at $20.65 per ton. Freight-adjusted revenues rose 6.4% from the prior-year quarter’s levels to $1.26 billion.
Gross profit of $528.5 million inched up from the prior-year figure of $499.7 million. Cash gross profit per ton improved to $10.92 from $9.76, backed by continued pricing momentum and solid execution despite lower shipments stemming from unfavorable weather conditions for most of the quarter.
Asphalt and Concrete
Revenues in the Asphalt segment were $351.2 million, up 4.1% year over year. The segment generated a solid gross profit of $59 million compared with $56.6 million a year ago. Volumes were in line with the year-ago figures, while prices improved 4%. Strong shipments in California (its largest asphalt market) were partially offset by lower shipments in Texas due to inclement weather. We expected Asphalt revenues of $360.6 million.
Total revenues from the Concrete segment were $167.3 million, down 51.3% year over year. Gross profit totaled $4.7 million compared with $27 million in the year-ago period. Shipments fell to 0.9 million cubic yards from 2.1 million cubic yards year over year. Average selling prices increased 10% from the prior-year level. We expected Concrete revenues of $190.1 million.
Operating Highlights
Selling, administrative and general (SAG) expenses — as a percentage of total revenues — rose 10 basis points to 6.7% from a year ago.
Adjusted EBITDA margin was up 170 bps to 29.9% year over year.
Financials
As of Jun 30, 2024, cash and cash equivalents were $111 million, down from $931.1 million at 2023-end. Long-term debt was $3.33 billion at June-end, down from the 2023 level of $3.88 billion.
At Jun-end, total debt to trailing-12-months adjusted EBITDA was 1.7x, down from 1.9x at the end of 2023.
In the first half of 2024, net cash provided by operating activities was $374.5 million compared with $507.5 million a year ago.
2024 Guidance Lowered
Vulcan now anticipates adjusted EBITDA in the range of $2.00-$2.15 billion, up from the prior projection of $2.15-$2.30 billion. This indicates a 3.2% improvement from 2023 levels, considering the mid-point of the guidance. Net earnings are now expected in the range of $0.95-$1.07 billion (up from the prior projection of $1.07-$1.19) versus $933 million in the prior year.
SAG expenses are expected to be in the range of $550-$560 million (versus $543 million in 2023), with interest expenses of approximately $155 million, depreciation, depletion, accretion and amortization expenses of nearly $610 million and an effective tax rate of 22-23%.
In the Aggregates segment, cash gross profit per ton is likely to improve from the 2023 level of $9.46. Total shipments are likely to be down 4%-7%, freight-adjusted price growth is likely to be in the range of 10-12% and freight-adjusted cash cost is estimated to increase high-single digits.
In the Asphalt, Concrete and Calcium segment, cash gross profit is expected to be $275 million.
The company expects capital expenditures to be between $625 million and $675 million for maintenance and growth projects.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Gibraltar Industries, Inc. (ROCK - Free Report) reported strong second-quarter 2024 earnings despite top-line woes. Although both earnings and net sales missed the Zacks Consensus Estimate, the bottom line strengthened on a year-over-year basis.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Vulcan (VMC) Q2 Earnings & Revenues Lag Estimates, '24 View Cut
Vulcan Materials Company (VMC - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. On a year-over-year basis, earnings increased, but revenues declined due to lower Aggregate shipments.
VMC’s shares fell 4.6% in the pre-market trading session on Aug 6, after the earnings release. Investors’ sentiments are likely to have been hurt by the slashed 2024 net earnings outlook.
Inside the Headlines
Adjusted earnings of $2.35 per share missed the consensus mark of $2.47 by 4.9% but increased 2.6% from the year-ago level of $2.29.
Vulcan Materials Company Price, Consensus and EPS Surprise
Vulcan Materials Company price-consensus-eps-surprise-chart | Vulcan Materials Company Quote
Total revenues of $2.01 billion missed the consensus mark of $2.03 billion by 1% and declined 4.7% year over year.
Segments in Detail
Aggregates
Revenues from the segment were up 2.1% year over year to $1.61 billion. Aggregate shipments (volumes) declined 5% year over year to 60.1 million tons. We expected Aggregate revenues of $1.68 billion on 62.2 million tons of shipments.
Freight-adjusted average sales price rose 12.2% to $21.00 per ton from the prior-year level of $18.71. Our estimate for the same was pegged at $20.65 per ton. Freight-adjusted revenues rose 6.4% from the prior-year quarter’s levels to $1.26 billion.
Gross profit of $528.5 million inched up from the prior-year figure of $499.7 million. Cash gross profit per ton improved to $10.92 from $9.76, backed by continued pricing momentum and solid execution despite lower shipments stemming from unfavorable weather conditions for most of the quarter.
Asphalt and Concrete
Revenues in the Asphalt segment were $351.2 million, up 4.1% year over year. The segment generated a solid gross profit of $59 million compared with $56.6 million a year ago. Volumes were in line with the year-ago figures, while prices improved 4%. Strong shipments in California (its largest asphalt market) were partially offset by lower shipments in Texas due to inclement weather. We expected Asphalt revenues of $360.6 million.
Total revenues from the Concrete segment were $167.3 million, down 51.3% year over year. Gross profit totaled $4.7 million compared with $27 million in the year-ago period. Shipments fell to 0.9 million cubic yards from 2.1 million cubic yards year over year. Average selling prices increased 10% from the prior-year level. We expected Concrete revenues of $190.1 million.
Operating Highlights
Selling, administrative and general (SAG) expenses — as a percentage of total revenues — rose 10 basis points to 6.7% from a year ago.
Adjusted EBITDA margin was up 170 bps to 29.9% year over year.
Financials
As of Jun 30, 2024, cash and cash equivalents were $111 million, down from $931.1 million at 2023-end. Long-term debt was $3.33 billion at June-end, down from the 2023 level of $3.88 billion.
At Jun-end, total debt to trailing-12-months adjusted EBITDA was 1.7x, down from 1.9x at the end of 2023.
In the first half of 2024, net cash provided by operating activities was $374.5 million compared with $507.5 million a year ago.
2024 Guidance Lowered
Vulcan now anticipates adjusted EBITDA in the range of $2.00-$2.15 billion, up from the prior projection of $2.15-$2.30 billion. This indicates a 3.2% improvement from 2023 levels, considering the mid-point of the guidance. Net earnings are now expected in the range of $0.95-$1.07 billion (up from the prior projection of $1.07-$1.19) versus $933 million in the prior year.
SAG expenses are expected to be in the range of $550-$560 million (versus $543 million in 2023), with interest expenses of approximately $155 million, depreciation, depletion, accretion and amortization expenses of nearly $610 million and an effective tax rate of 22-23%.
In the Aggregates segment, cash gross profit per ton is likely to improve from the 2023 level of $9.46. Total shipments are likely to be down 4%-7%, freight-adjusted price growth is likely to be in the range of 10-12% and freight-adjusted cash cost is estimated to increase high-single digits.
In the Asphalt, Concrete and Calcium segment, cash gross profit is expected to be $275 million.
The company expects capital expenditures to be between $625 million and $675 million for maintenance and growth projects.
Zacks Rank & Recent Construction Releases
VMC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Gibraltar Industries, Inc. (ROCK - Free Report) reported strong second-quarter 2024 earnings despite top-line woes. Although both earnings and net sales missed the Zacks Consensus Estimate, the bottom line strengthened on a year-over-year basis.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.