Valmont Earnings: What To Look For From VMI

Infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE:VMI) will be reporting results tomorrow after market close. Here’s what to look for.

Valmont met analysts’ revenue expectations last quarter, reporting revenues of $1.04 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings 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 decline 2.8% year on year to $1.02 billion, improving from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.00 per share.

The majority of analysts covering the company have 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, some have already reported their Q3 results, giving us a hint as to what we can expect. AZZ delivered year-on-year revenue growth of 2.6%, meeting analysts’ expectations, and Insteel reported a revenue decline of 14.7%, falling short of estimates by 7.5%. AZZ traded down 5.2% following the results while Insteel was also down 7.4%.

Read our full analysis of AZZ’s results here and Insteel’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 3.3% on average over the last month. Valmont is up 6.5% during the same time and is heading into earnings with an average analyst price target of $335 (compared to the current share price of $305.22).

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