Latest news with #ValmontIndustries
Yahoo
23-05-2025
- Business
- Yahoo
Why Is Valmont (VMI) Up 9.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Valmont Industries (VMI). Shares have added about 9.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Valmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. It turns out, estimates revision have trended downward during the past month. Currently, Valmont has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Valmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-04-2025
- Business
- Yahoo
Valmont (NYSE:VMI) Misses Q1 Revenue Estimates
Infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE:VMI) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $969.3 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $4.1 billion at the midpoint. Its GAAP profit of $4.32 per share was 0.8% below analysts' consensus estimates. Is now the time to buy Valmont? Find out in our full research report. Revenue: $969.3 million vs analyst estimates of $975.5 million (flat year on year, 0.6% miss) EPS (GAAP): $4.32 vs analyst expectations of $4.36 (0.8% miss) Adjusted EBITDA: $149.8 million vs analyst estimates of $157.4 million (15.5% margin, 4.8% miss) The company reconfirmed its revenue guidance for the full year of $4.1 billion at the midpoint EPS (GAAP) guidance for the full year is $18 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 13.2%, in line with the same quarter last year Free Cash Flow Margin: 3.6%, up from 0.9% in the same quarter last year Backlog: $1.49 billion at quarter end Market Capitalization: $5.41 billion President and Chief Executive Officer Avner M. Applbaum commented, 'Most of our end markets are showing resilience against the current backdrop of economic uncertainty, driving growth in key parts of our business. We're seeing continued strength in Infrastructure, particularly Utility and Telecommunications, as well as solid demand trends in International Agriculture. Our infrastructure capacity investments are beginning to ramp up and are expected to contribute to sales growth as the year progresses. In Agriculture, strong international performance, especially from large-scale projects, is offsetting softness in the North American market. Our first-quarter results reflect disciplined execution and steady progress on our strategic priorities, which help us remain agile while navigating dynamic conditions, including tariff impacts. Across the organization, we're executing well and remain confident in our full-year outlook, while also being alert to the rapidly-evolving environment in which we operate, as we deliver value for our customers and shareholders.' Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry. Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Valmont's sales grew at a decent 8.1% compounded annual growth rate over the last five years. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Valmont's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 4.2% over the last two years. Valmont isn't alone in its struggles as the Building Materials industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, Valmont missed Wall Street's estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $969.3 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 1.2% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. At least the company is tracking well in other measures of financial health. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Valmont has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 9.5%, higher than the broader industrials sector. Looking at the trend in its profitability, Valmont's operating margin rose by 4.9 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Valmont generated an operating profit margin of 13.2%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Valmont's EPS grew at an astounding 19.4% compounded annual growth rate over the last five years, higher than its 8.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Valmont's earnings to better understand the drivers of its performance. As we mentioned earlier, Valmont's operating margin was flat this quarter but expanded by 4.9 percentage points over the last five years. On top of that, its share count shrank by 6.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Valmont, its two-year annual EPS growth of 18.7% is similar to its five-year trend, implying strong and stable earnings power. In Q1, Valmont reported EPS at $4.32, in line with the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects Valmont's full-year EPS of $17.18 to grow 7.9%. We struggled to find many positives in these results. Its EBITDA missed and its revenue fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 1.9% to $264.46 immediately following the results. Valmont may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
21-04-2025
- Business
- Yahoo
Valmont (VMI) Q1 Earnings Report Preview: What To Look For
Infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE:VMI) will be reporting earnings tomorrow before market open. Here's what investors should know. Valmont beat analysts' revenue expectations by 2.6% last quarter, reporting revenues of $1.04 billion, up 2.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts' organic revenue and adjusted operating income estimates. Is Valmont a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Valmont's revenue to be flat year on year at $975.5 million, improving from the 8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.36 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Valmont has missed Wall Street's revenue estimates five times over the last two years. Looking at Valmont's peers in the building products segment, only Insteel has reported results so far. It beat analysts' revenue estimates by 7.2%, delivering year-on-year sales growth of 26.1%. Read our full analysis of Insteel's earnings results you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Yahoo
09-04-2025
- Business
- Yahoo
Is It Time To Consider Buying Valmont Industries, Inc. (NYSE:VMI)?
While Valmont Industries, Inc. (NYSE:VMI) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$377 at one point, and dropping to the lows of US$264. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Valmont Industries' current trading price of US$265 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Valmont Industries's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Good news, investors! Valmont Industries is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 15.26x is currently well-below the industry average of 20.54x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Valmont Industries's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for Valmont Industries Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Valmont Industries' earnings over the next few years are expected to increase by 25%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? Since VMI is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple. Are you a potential investor? If you've been keeping an eye on VMI for a while, now might be the time to make a leap. Its buoyant future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy VMI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 1 warning sign for Valmont Industries and we think they deserve your attention. If you are no longer interested in Valmont Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Is It Time To Consider Buying Valmont Industries, Inc. (NYSE:VMI)?
While Valmont Industries, Inc. (NYSE:VMI) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$377 at one point, and dropping to the lows of US$264. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Valmont Industries' current trading price of US$265 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Valmont Industries's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Good news, investors! Valmont Industries is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 15.26x is currently well-below the industry average of 20.54x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Valmont Industries's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for Valmont Industries Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Valmont Industries' earnings over the next few years are expected to increase by 25%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? Since VMI is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple. Are you a potential investor? If you've been keeping an eye on VMI for a while, now might be the time to make a leap. Its buoyant future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy VMI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 1 warning sign for Valmont Industries and we think they deserve your attention. If you are no longer interested in Valmont Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
