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Valmont's Earnings and Revenues Surpass Estimates in Q3
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Valmont Industries, Inc. (VMI - Free Report) reported a third-quarter 2024 profit of $83 million or $4.11 per share. This compares favorably to a loss of $49 million or $2.34 per share in the year-ago quarter. Adjusted earnings per share were $4.11, down from $4.12 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.96.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s revenues were $1,020.2 million in the quarter, down 2.9% year over year. The top line beat the Zacks Consensus Estimate of $1,019.1 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
The third-quarter revenues in the infrastructure segment increased roughly 0.4% over the previous year, totaling $756.4 million. It lagged our estimate of $759.3 million. The increase in utility and telecommunications sales offset the decrease in Lighting, Transportation and solar sales. Utility sales jumped approximately 15%, owing to a favorable project mix and larger volumes of distribution and substation products. Telecommunications volumes rose, owing to increasing carrier spending in a stabilized North American market.
Agriculture segment revenues totaled $263.8 million, down 11.1% year over year. It topped our estimate of $261.8 million. International sales fell year over year, with significantly reduced sales in Brazil due to normalized backlog levels and lower grain prices, which influenced growers' purchasing decisions. This fall was partially offset by revenue growth in the Europe, Middle East and Africa ("EMEA") region, as well as the contribution from the HR Products acquisition. In North America, the volume of irrigation equipment was modestly lower. A rise in replacement sales caused by severe weather occurrences earlier in 2024 was countered by ongoing agriculture market downturn amid reduced grain prices. The average irrigation selling price was similar to previous year.
VMI’s Financials
The company's operating cash flows totaled $225.1 million. At the end of the third quarter, cash and cash equivalents were $200.5 million. VMI paid $12.1 million in dividends and repurchased $40.1 million of its stock, keeping $81 million available on the approved share repurchase program. It reduced borrowings on its revolving credit facility by around $120 million this quarter, bringing the total year-to-date net reduction to roughly $210 million.
VMI’s 2024 Outlook
Valmont expects net sales to decline 1.5-3.5%. Earnings per share (as reported) are expected to be $16.50 to $17.30. It anticipates capital expenditures in the $85-$95 million range to support strategic growth initiatives.
VMI’s Stock Price Performance
VMI shares have soared 28.2% in the past year compared with the industry’s rise of 8.9% over the same period.
Image Source: Zacks Investment Research
VMI’s Zacks Rank & Other Key Picks
VMI currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation (IAG - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Barrick Gold Gorporation (GOLD - Free Report) .
IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agnico Eagle is slated to report third-quarter results on Oct. 30, after market close. The Zacks Consensus Estimate for AEM’s third-quarter earnings is pegged at 96 cents. AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. AEM currently carries a Zacks Rank #1.
Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 35 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.1%.
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Valmont's Earnings and Revenues Surpass Estimates in Q3
Valmont Industries, Inc. (VMI - Free Report) reported a third-quarter 2024 profit of $83 million or $4.11 per share. This compares favorably to a loss of $49 million or $2.34 per share in the year-ago quarter. Adjusted earnings per share were $4.11, down from $4.12 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.96.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s revenues were $1,020.2 million in the quarter, down 2.9% year over year. The top line beat the Zacks Consensus Estimate of $1,019.1 million.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
VMI’s Segment Review
The third-quarter revenues in the infrastructure segment increased roughly 0.4% over the previous year, totaling $756.4 million. It lagged our estimate of $759.3 million. The increase in utility and telecommunications sales offset the decrease in Lighting, Transportation and solar sales. Utility sales jumped approximately 15%, owing to a favorable project mix and larger volumes of distribution and substation products. Telecommunications volumes rose, owing to increasing carrier spending in a stabilized North American market.
Agriculture segment revenues totaled $263.8 million, down 11.1% year over year. It topped our estimate of $261.8 million. International sales fell year over year, with significantly reduced sales in Brazil due to normalized backlog levels and lower grain prices, which influenced growers' purchasing decisions. This fall was partially offset by revenue growth in the Europe, Middle East and Africa ("EMEA") region, as well as the contribution from the HR Products acquisition. In North America, the volume of irrigation equipment was modestly lower. A rise in replacement sales caused by severe weather occurrences earlier in 2024 was countered by ongoing agriculture market downturn amid reduced grain prices. The average irrigation selling price was similar to previous year.
VMI’s Financials
The company's operating cash flows totaled $225.1 million. At the end of the third quarter, cash and cash equivalents were $200.5 million. VMI paid $12.1 million in dividends and repurchased $40.1 million of its stock, keeping $81 million available on the approved share repurchase program. It reduced borrowings on its revolving credit facility by around $120 million this quarter, bringing the total year-to-date net reduction to roughly $210 million.
VMI’s 2024 Outlook
Valmont expects net sales to decline 1.5-3.5%. Earnings per share (as reported) are expected to be $16.50 to $17.30. It anticipates capital expenditures in the $85-$95 million range to support strategic growth initiatives.
VMI’s Stock Price Performance
VMI shares have soared 28.2% in the past year compared with the industry’s rise of 8.9% over the same period.
Image Source: Zacks Investment Research
VMI’s Zacks Rank & Other Key Picks
VMI currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation (IAG - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Barrick Gold Gorporation (GOLD - Free Report) .
IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agnico Eagle is slated to report third-quarter results on Oct. 30, after market close. The Zacks Consensus Estimate for AEM’s third-quarter earnings is pegged at 96 cents. AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. AEM currently carries a Zacks Rank #1.
Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 35 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.1%.