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Why Is Vulcan (VMC) Up 4.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Vulcan Materials (VMC - Free Report) . Shares have added about 4.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vulcan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vulcan Q3 Earnings & Revenues Lag Estimates, 2025 View Cut
Vulcan reported third-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate and declining on a year-over-year basis due to severe weather, including hurricanes and storms across the Southeast, that led to lower aggregates shipments.
Nonetheless, Vulcan reported a 10% increase in aggregates cash gross profit per ton, marking the eighth consecutive quarter of double-digit growth. Additionally, Vulcan’s recent acquisition of Wake Stone Corporation will extend its presence in the high-growth Carolinas region. The company's "Vulcan Way of Selling and Operating" principles as key drivers in enhancing profitability and seamlessly integrating new operations.
Inside the Headlines
Adjusted earnings of $2.22 per share missed the consensus mark of $2.34 by 5.1% and declined 3.1% from the year-ago level.
Total revenues of $2.004 billion missed the consensus mark of $2.036 billion by 1.6% and declined 8.3% year over year.
Segments in Detail
Aggregates
Revenues from the segment were down 3.4% year over year to $1.57 billion. Aggregate shipments (volumes) declined 10% year over year to 57.7 million tons. Shipments across the Southeast were disrupted due to heavy rainfall in July, followed by multiple hurricanes and severe storms in August and September. This contrasts with the previous year's third quarter, which saw fewer severe weather events.
Freight-adjusted average sales price rose 10.2% to $21.27 per ton from the prior year level. Freight-adjusted revenues were down 0.6% from the prior-year quarter’s levels to $1.23 billion. Gross profit of $498.5 million inched down from the prior-year figure of $509.1 million but gross margin expanded 40 basis points (bps). Cash gross profit per ton improved 10% to $10.89 despite the challenges.
Asphalt and Concrete
Revenues in the Asphalt segment were $381.1 million, up 9.8% year over year. The segment generated a solid gross profit of $60.2 million, up 7.7% from a year ago. Volumes were up slightly to 4.1 million tons from 4 million tons a year ago, while prices improved 6.1%.
Total revenues from the Concrete segment were $174.4 million, down 52.2% year over year. Gross profit totaled $6.5 million compared with $26 million in the year-ago period. Shipments fell to 0.9 million cubic yards from 2.1 million cubic yards year over year. The downside was mainly due to the previous third quarter's inclusion of results from divested concrete assets in Texas. Average selling prices increased 9.2% from the prior-year level.
Operating Highlights
Selling, administrative and general (SG&A) expenses — as a percentage of total revenues — improved 20 basis points to 6.4% from a year ago.
Adjusted EBITDA margin was up 140 bps to 29% year over year.
Financials
As of Sept. 30, 2024, cash and cash equivalents were $433.2 million, down from $931.1 million at 2023-end. Long-term debt was $3.33 billion at September-end, down from the 2023 level of $3.88 billion.
As of September-end, total debt to trailing-12-months adjusted EBITDA was 1.7x, down from 1.9x at the end of 2023.
In the first nine months of 2024, net cash provided by operating activities was $969.5 million compared with $1.06 billion a year ago.
2024 Guidance Updated
Weather disruptions have been impacting construction, affecting shipments and prompting a revised full-year adjusted EBITDA forecast of approximately $2 billion. Despite these challenges, demand fundamentals remain strong, with positive pricing dynamics and solid execution.
Looking to 2025, the company anticipates high-single-digit price increases in aggregates, cost benefits from operational efficiencies, and double-digit growth in cash gross profit per ton. Volume growth is expected due to robust public construction and a recovering private sector. The company aims to leverage its commercial and operational strengths to capitalize on this demand and drive earnings growth.
The company expects capital expenditures between $625 million and $650 million for maintenance and growth projects.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -5.24% due to these changes.
VGM Scores
At this time, Vulcan has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Vulcan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Vulcan (VMC) Up 4.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Vulcan Materials (VMC - Free Report) . Shares have added about 4.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vulcan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vulcan Q3 Earnings & Revenues Lag Estimates, 2025 View Cut
Vulcan reported third-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate and declining on a year-over-year basis due to severe weather, including hurricanes and storms across the Southeast, that led to lower aggregates shipments.
Nonetheless, Vulcan reported a 10% increase in aggregates cash gross profit per ton, marking the eighth consecutive quarter of double-digit growth. Additionally, Vulcan’s recent acquisition of Wake Stone Corporation will extend its presence in the high-growth Carolinas region. The company's "Vulcan Way of Selling and Operating" principles as key drivers in enhancing profitability and seamlessly integrating new operations.
Inside the Headlines
Adjusted earnings of $2.22 per share missed the consensus mark of $2.34 by 5.1% and declined 3.1% from the year-ago level.
Total revenues of $2.004 billion missed the consensus mark of $2.036 billion by 1.6% and declined 8.3% year over year.
Segments in Detail
Aggregates
Revenues from the segment were down 3.4% year over year to $1.57 billion. Aggregate shipments (volumes) declined 10% year over year to 57.7 million tons. Shipments across the Southeast were disrupted due to heavy rainfall in July, followed by multiple hurricanes and severe storms in August and September. This contrasts with the previous year's third quarter, which saw fewer severe weather events.
Freight-adjusted average sales price rose 10.2% to $21.27 per ton from the prior year level. Freight-adjusted revenues were down 0.6% from the prior-year quarter’s levels to $1.23 billion. Gross profit of $498.5 million inched down from the prior-year figure of $509.1 million but gross margin expanded 40 basis points (bps). Cash gross profit per ton improved 10% to $10.89 despite the challenges.
Asphalt and Concrete
Revenues in the Asphalt segment were $381.1 million, up 9.8% year over year. The segment generated a solid gross profit of $60.2 million, up 7.7% from a year ago. Volumes were up slightly to 4.1 million tons from 4 million tons a year ago, while prices improved 6.1%.
Total revenues from the Concrete segment were $174.4 million, down 52.2% year over year. Gross profit totaled $6.5 million compared with $26 million in the year-ago period. Shipments fell to 0.9 million cubic yards from 2.1 million cubic yards year over year. The downside was mainly due to the previous third quarter's inclusion of results from divested concrete assets in Texas. Average selling prices increased 9.2% from the prior-year level.
Operating Highlights
Selling, administrative and general (SG&A) expenses — as a percentage of total revenues — improved 20 basis points to 6.4% from a year ago.
Adjusted EBITDA margin was up 140 bps to 29% year over year.
Financials
As of Sept. 30, 2024, cash and cash equivalents were $433.2 million, down from $931.1 million at 2023-end. Long-term debt was $3.33 billion at September-end, down from the 2023 level of $3.88 billion.
As of September-end, total debt to trailing-12-months adjusted EBITDA was 1.7x, down from 1.9x at the end of 2023.
In the first nine months of 2024, net cash provided by operating activities was $969.5 million compared with $1.06 billion a year ago.
2024 Guidance Updated
Weather disruptions have been impacting construction, affecting shipments and prompting a revised full-year adjusted EBITDA forecast of approximately $2 billion. Despite these challenges, demand fundamentals remain strong, with positive pricing dynamics and solid execution.
Looking to 2025, the company anticipates high-single-digit price increases in aggregates, cost benefits from operational efficiencies, and double-digit growth in cash gross profit per ton. Volume growth is expected due to robust public construction and a recovering private sector. The company aims to leverage its commercial and operational strengths to capitalize on this demand and drive earnings growth.
The company expects capital expenditures between $625 million and $650 million for maintenance and growth projects.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -5.24% due to these changes.
VGM Scores
At this time, Vulcan has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Vulcan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.