Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Valmont Industries despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Valmont is expected to report quarterly earnings of $3.66 per share, reflecting a year-over-year increase of +15.1%, while revenues are projected to be $1.01 billion, a decrease of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Valmont is lower than the consensus estimate, resulting in an Earnings ESP of -0.27%, suggesting a bearish sentiment among analysts [10]. Historical Performance - Valmont has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +3.79% in the last reported quarter [12][13]. Zacks Rank - The company currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP makes it challenging to predict a beat against the consensus EPS estimate [11]. Conclusion - While Valmont may not be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

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Core Insights - Valmont Industries reported a third-quarter profit of $83 million or $4.11 per share, a significant improvement from a loss of $49 million or $2.34 per share in the same quarter last year, beating the Zacks Consensus Estimate of $3.96 [2] - The company's revenues for the quarter were $1,020.2 million, down 2.9% year over year, but still surpassing the Zacks Consensus Estimate of $1,019.1 million [3] Segment Review - The infrastructure segment's revenues increased by approximately 0.4% year over year to $756.4 million, although it fell short of the estimate of $759.3 million, driven by a 15% increase in utility sales and rising telecommunications volumes [4] - The agriculture segment reported revenues of $263.8 million, down 11.1% year over year, but exceeded the estimate of $261.8 million, with international sales declining significantly in Brazil due to lower grain prices [5] Financials - Valmont's operating cash flows totaled $225.1 million, with cash and cash equivalents at $200.5 million at the end of the third quarter [6] - The company paid $12.1 million in dividends and repurchased $40.1 million of its stock, maintaining $81 million available for share repurchase [6] 2024 Outlook - Valmont anticipates a net sales decline of 1.5-3.5% and expects earnings per share to be in the range of $16.50 to $17.30, with capital expenditures projected between $85 million and $95 million [7] Estimates Movement - Estimates for Valmont have trended downward over the past month, indicating a shift in expectations [8][10] VGM Scores - Valmont holds a strong Growth Score of A but has a lower Momentum Score of C, resulting in an aggregate VGM Score of B, placing it in the middle 20% for the investment strategy [9]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Valmont Industries (VMI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 20.7%, with a projected EPS growth of 13.5% this year, significantly outperforming the industry average of -10.3% [4] Group 2: Financial Metrics - Valmont's year-over-year cash flow growth is 7.7%, surpassing the industry average of 6.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.1%, compared to the industry average of 6.8% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Valmont, with the Zacks Consensus Estimate for the current year increasing by 0.6% over the past month [7] - Valmont has achieved a Growth Score of A and a Zacks Rank of 2 due to these positive earnings estimate revisions [8]

Group 1 - Valmont Industries (NYSE: VMI) is expected to see positive revenue growth next year, driven by strong demand in the Infrastructure segment [1] - The Infrastructure segment is benefiting from healthy capital expenditures in Utility and Telecom sectors, as well as IIJA funding supporting the Transportation end market [1] - There is a noted reversal in trends that is contributing to the anticipated growth in revenue for Valmont Industries [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades [1] Company Overview: Valmont Industries (VMI) - Valmont Industries currently holds a Momentum Style Score of A, indicating strong momentum characteristics [1] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [2] Price Performance - VMI shares have increased by 1.35% over the past week, while the Zacks Steel - Pipe and Tube industry has decreased by 0.51% during the same period [3] - Over the past month, VMI's price change is 14.3%, significantly outperforming the industry's 0.94% [3] - In the last quarter, VMI shares rose by 9.13%, and over the past year, they have increased by 40.76%, compared to the S&P 500's gains of 4.71% and 39.26%, respectively [3] Trading Volume - VMI's average 20-day trading volume is 117,171 shares, which serves as a bullish indicator when combined with rising stock prices [3] Earnings Outlook - In the last two months, one earnings estimate for VMI has been revised upward, while none have been revised downward, leading to an increase in the consensus estimate from $16.88 to $16.90 [4] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [4] Conclusion - Given the strong momentum indicators and positive earnings outlook, VMI is recommended as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [4]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $1 billion, a decrease of 2.9% compared to the previous year [15] - Operating income increased by $4.9 million to $125.7 million, with operating margin improving by 80 basis points to 12.3% of net sales [16] - Earnings per share remained stable at $4.11, with a 4.2% lower share count offsetting foreign currency losses and a normalized tax rate [16] Business Line Data and Key Metrics Changes - Infrastructure sales were $758.6 million, slightly increasing year-over-year, with operating income growing 14.5% to $123.7 million [17] - Lighting and Transportation revenues declined by 9.3% to $229.2 million, impacted by market softness and project timing [18] - Agricultural sales decreased by 11.1% to $265.3 million, with operating income down 25% to $28.9 million due to lower demand and grain prices [20] Market Data and Key Metrics Changes - North American sales in agriculture were slightly lower, with USDA forecasting a decline in net farm income and crop prices [11] - International sales in agriculture decreased primarily due to lower sales in Brazil, although order entry showed improvement [11] - The telecommunications business grew nearly 8% year-over-year, indicating a return to normalized spending levels by wireless carriers [10] Company Strategy and Development Direction - The company is focused on aligning with customers and markets benefiting from multiyear megatrends, emphasizing customer-driven innovation [6] - Strategic hires and internal promotions have been made to strengthen the executive leadership team [12] - The company aims to streamline operations, reduce costs, and effectively manage working capital to maximize cash flow [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in both infrastructure and agriculture, citing strong demand drivers [13] - The company anticipates a normalized year in agriculture following strong storm sales in 2024, with cautious optimism for 2025 [29][45] - Management highlighted the importance of proactive grid investments in utilities, especially in light of recent hurricanes [8] Other Important Information - The company generated strong operating cash flows of $225 million, enhancing its balance sheet [5] - Capital spending year-to-date was approximately $54 million, with a focus on expanding production capacity [22] - The full-year net sales outlook remains unchanged, with expectations of a decrease between 1.5% and 3.5% compared to the previous year [23] Q&A Session Summary Question: Operating margins and agriculture improvement - Management acknowledged the need for meaningful improvement in agriculture to maintain operating margins close to 13% in 2025, despite current strong performance [27][28] Question: North American agriculture replacement sales - Management expects to see some benefits from replacement sales due to severe weather, but anticipates a more normalized year ahead [29] Question: Pricing in utility business - Management noted strong demand and deliberate pricing actions leading to higher average selling prices in the utility segment, despite steel price deflation [31][32] Question: Order rates in Brazil - Management expressed cautious optimism regarding improving order rates in Brazil, while acknowledging ongoing challenges due to low soybean prices [36][37] Question: Lighting and Transportation performance - Management identified weaknesses in residential lighting and project timing as key factors impacting performance, but expects improvement as housing markets rebound [38] Question: Telecommunications market activity - Management reported an 8% growth in telecommunications, with expectations for continued momentum driven by 5G network build-out [50]

Q3 2024 Financial Performance - Valmont's net sales were $1.02 billion, a decrease of 2.9% year-over-year[6, 14] - The operating margin increased year-over-year to 12.3%[6, 14] - Operating cash flows were strong at $225 million for Q3 2024, bringing the year-to-date total to $379 million[6, 27] Segment Results - Infrastructure sales increased by 0.5% to $758.6 million in Q3 2024[16] - Utility segment sales increased by 14.9% to $342.4 million[18] - Lighting and Transportation (L&T) sales decreased by 9.3% to $229.2 million[18] - Solar sales decreased significantly by 38.1% to $34.6 million due to project deselection[18] - Agriculture sales decreased by 11.1% to $265.3 million in Q3 2024[6, 21] - North America agriculture sales decreased by 5.4% to $120 million[23] - International agriculture sales decreased by 15.3% to $145.3 million[23] Capital Allocation and Liquidity - Year-to-date capital deployment totaled $145 million, including $55 million in share repurchases and $36 million in dividends[29] - The company reduced borrowings on its revolving line of credit by $120 million during the quarter[27] - Available liquidity was $832 million, including $200 million in cash and $632 million available under the revolving credit facility[26, 27] 2024 Outlook - Valmont reaffirmed its 2024 outlook, expecting a net sales change of -3.5% to -1.5% year-over-year and GAAP diluted EPS of $16.50 to $17.30[31] - Infrastructure net sales are expected to be flat to up 1.5% year-over-year[31] - Agriculture net sales are expected to be down 10.0% to 15.0% year-over-year[31]

Core Insights - Valmont Industries, Inc. (VMI) reported a third-quarter profit of $83 million or $4.11 per share, a significant improvement from a loss of $49 million or $2.34 per share in the same quarter last year, and beat the Zacks Consensus Estimate of $3.96 [1] - The company's revenues for the quarter were $1,020.2 million, down 2.9% year over year, but exceeded the Zacks Consensus Estimate of $1,019.1 million [1] Segment Review - The infrastructure segment's revenues increased by approximately 0.4% year over year to $756.4 million, although it fell short of the estimate of $759.3 million; utility sales surged around 15% due to a favorable project mix and higher volumes [2] - Agriculture segment revenues totaled $263.8 million, down 11.1% year over year, but surpassed the estimate of $261.8 million; international sales declined, particularly in Brazil, while growth was noted in the EMEA region [3] Financials - Operating cash flows amounted to $225.1 million, with cash and cash equivalents at $200.5 million at the end of the third quarter; the company paid $12.1 million in dividends and repurchased $40.1 million of its stock [4] - VMI reduced borrowings on its revolving credit facility by approximately $120 million this quarter, totaling a year-to-date net reduction of around $210 million [4] 2024 Outlook - Valmont anticipates a net sales decline of 1.5-3.5% and expects earnings per share to be in the range of $16.50 to $17.30; capital expenditures are projected to be between $85 million and $95 million to support strategic growth initiatives [5] Stock Performance - VMI shares have increased by 28.2% over the past year, outperforming the industry's rise of 8.9% during the same period [6]

Core Insights - Valmont Industries reported revenue of $1.02 billion for the quarter ended September 2024, reflecting a decrease of 2.9% year-over-year, while EPS was $4.11, slightly down from $4.12 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate by +0.10%, and the EPS surpassed the consensus estimate of $3.96 by +3.79% [1] Financial Performance Metrics - Total Sales- Intersegment: reported at -$3.69 million, slightly worse than the estimated -$3.51 million, but a +13.1% change compared to the year-ago quarter [2] - Total Sales- Infrastructure: $758.58 million, below the estimated $770.03 million [2] - Total Sales- Agriculture: $265.29 million, exceeding the estimated $253.27 million [2] - Operating Income / (loss)- Corporate: -$26.82 million, worse than the average estimate of -$23.77 million [2] - Operating Income / (loss)- Infrastructure: $123.66 million, better than the average estimate of $118.07 million [2] - Operating Income / (loss)- Agriculture: $28.89 million, exceeding the average estimate of $26.47 million [2] Stock Performance - Valmont's shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [2]