Valmont Industries (VMI): Q4 Earnings Preview
Infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE: VMI) is set to report its fourth-quarter results before the market open tomorrow.
Analysts' Expectations:
Analysts expect Valmont's revenue to remain unchanged from the prior year at $1.01 billion, an improvement from the 10.3% decline reported in Q4 2022. Adjusted earnings per share are estimated at $3.63.
Analysts' Outlook:
Analysts have generally maintained their estimates over the past 30 days, suggesting no major shifts in their expectations. Over the past two years, Valmont has missed Wall Street's revenue targets five times.
Peers' Performance:
Peers in the building materials sector have already reported their Q4 results. AZEK delivered year-over-year revenue growth of 18.7%, beating analysts' estimates by 7.9%, while Sherwin-Williams reported flat revenue in line with the consensus. AZEK's stock price rose 2.5% after its earnings, while Sherwin-Williams' stock remained unchanged.
Market Context:
Inflation has moderated recently, boosting stock market sentiment. Recent rate cuts and the upcoming 2024 Presidential election have further fueled market optimism. While some building materials stocks have performed well, the sector has generally underperformed, with share prices down 4.6% on average in the past month.
Analyst Price Target:
Valmont has an average analyst price target of $368.75, significantly higher than its current share price of $320.79.
Growth Potential:
Valmont is a key player in the infrastructure and agriculture industries, which are well-positioned for growth due to increasing population and climate change.