Quick Summary
- Valmont Industries (VMI) reported Q3 earnings of $4.11 per share, exceeding the Zacks Consensus Estimate of $3.96.
- Revenue for the quarter reached $1.02 billion, slightly surpassing the Zacks Consensus Estimate.
- The company has beaten EPS estimates in all of the last four quarters.
- Valmont shares have seen a year-to-date gain of approximately 29.3%, outperforming the S&P 500’s 22.7% increase.
- The stock is currently rated a Zacks Rank #1 (Strong Buy), indicating a positive near-term outlook.
Valmont Industries Exceeds Q3 Expectations
Valmont Industries (VMI) has announced its latest quarterly earnings, revealing a net income of $4.11 per share. This figure surpasses the Zacks Consensus Estimate, which had projected earnings of $3.96 per share. For historical context, this compares to earnings of $4.12 per share from the same period last year. These results are adjusted for non-recurring items.
💡 This quarterly performance represents an earnings surprise of 3.79%. In the previous quarter, Valmont had delivered a more significant surprise of 17.82%, posting earnings of $4.76 per share against an expected $4.04 per share.
📊 Over the last four reporting periods, Valmont Industries has consistently exceeded the consensus Earnings Per Share (EPS) estimates, achieving this feat in each instance.
Revenue Performance and Future Outlook
Valmont, operating within the Zacks Steel – Pipe and Tube industry, reported revenues of $1.02 billion for the quarter concluding in September 2024. This revenue figure edged past the Zacks Consensus Estimate by 0.10%, although it fell short of the $1.05 billion reported in the year-ago quarter. The company has exceeded consensus revenue estimates only once in the past four quarters.
📌 The sustainability of Valmont’s stock performance following these results will likely hinge on management’s commentary regarding future earnings expectations during the upcoming earnings call.
⚡ Valmont shares have demonstrated strong market performance, with a year-to-date gain of about 29.3%. This return significantly outpaces the S&P 500’s gain of 22.7% over the same period.
What’s Next for Valmont?
With Valmont’s impressive year-to-date stock performance, investors are keenly focused on the company’s future trajectory. A critical factor in assessing this outlook is the trend in earnings expectations.
💡 Empirical research suggests a strong correlation between short-term stock price movements and revisions in earnings estimates. Investors can monitor these trends directly or utilize rating systems like the Zacks Rank, which is designed to leverage the impact of earnings estimate revisions.
📍 Ahead of this earnings release, Valmont experienced a favorable trend in estimate revisions. Following the recently published earnings report, the magnitude and direction of these revisions may shift. However, the current status has resulted in Valmont receiving a Zacks Rank #1 (Strong Buy) rating, suggesting an expectation of outperformance in the near future.
📊 For the upcoming quarter, the current consensus EPS estimate stands at $3.72, with projected revenues of $1.02 billion. For the current fiscal year, the consensus EPS estimate is $16.90, with total revenues anticipated at $4.06 billion.
Industry Context and Peer Performance
The performance of the broader industry can significantly influence a company’s stock. The Steel – Pipe and Tube industry, to which Valmont belongs, is currently positioned within the top 40% of over 250 Zacks-ranked industries. Research indicates that industries in the top 50% of the Zacks ranking historically outperform those in the bottom 50% by more than a two-to-one margin.
📍 MRC Global (MRC), another company within the same industry, is yet to report its results for the quarter ending September 2024, with its release scheduled for November 5.
⚡ Analysts project MRC Global to report quarterly earnings of $0.18 per share, indicating a year-over-year decrease of 43.8%. The consensus EPS estimate for MRC Global has been revised downward by 20% over the past 30 days.
📊 Revenue expectations for MRC Global are $796.9 million, representing a 10.3% decline compared to the same quarter last year.
Closing Insights
Valmont Industries’ recent earnings report indicates a positive performance, with the company surpassing analyst expectations for both earnings per share and revenue. The stock’s strong year-to-date gains and favorable Zacks Rank suggest a promising short-term outlook, supported by a favorable industry position.