Core Insights - Valmont Industries (VMI) reported quarterly earnings of $4.11 per share, exceeding the Zacks Consensus Estimate of $3.96 per share, but slightly down from $4.12 per share a year ago, indicating a 0.24% year-over-year decline [1] - The company achieved a revenue of $1.02 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.10%, but down from $1.05 billion in the same quarter last year [1] - Valmont has consistently surpassed consensus EPS estimates over the last four quarters, achieving an earnings surprise of 3.79% in the latest report [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.72 on revenues of $1.02 billion, while for the current fiscal year, the estimate is $16.90 on revenues of $4.06 billion [4] - The estimate revisions trend for Valmont is currently favorable, resulting in a Zacks Rank 1 (Strong Buy), suggesting that the shares are expected to outperform the market in the near future [4] Industry Context - The Steel - Pipe and Tube industry, to which Valmont belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a positive outlook for stocks within this sector [5] - MRC Global, another company in the same industry, is expected to report a significant year-over-year earnings decline of 43.8% in its upcoming results, with a consensus EPS estimate of $0.18 [5]

Financial Performance - Net sales for Q3 2024 were $1.0 billion, a decrease of 2.9% compared to Q3 2023[2] - Operating income increased to $125.7 million, representing 12.3% of net sales, compared to an operating loss of ($24.2) million in Q3 2023[2] - Diluted earnings per share (EPS) were $4.11, a significant improvement from a diluted loss per share of ($2.34) in Q3 2023[2] - Generated strong operating cash flows of $225.1 million, with cash and cash equivalents at $200.5 million at the end of Q3[2] - The company reaffirmed its full-year 2024 financial outlook, expecting net sales to decrease between 3.5% and 1.5% compared to the prior year[11] - Diluted EPS guidance for 2024 is projected to be between $16.50 and $17.30[11] - Net sales for the thirteen weeks ended September 28, 2024, were $1,020,175, a decrease of 2.9% compared to $1,050,295 for the same period in 2023[15] - Gross profit for the thirteen weeks ended September 28, 2024, was $301,693, down from $315,111 in the prior year, resulting in a gross margin of 29.5% compared to 30.0%[15] - Operating income for the thirteen weeks ended September 28, 2024, was $125,735, a significant recovery from an operating loss of $(24,190) in the same quarter of 2023[15] - Net earnings attributable to Valmont Industries, Inc. for the thirteen weeks ended September 28, 2024, were $83,068, compared to a net loss of $(49,028) in the prior year[15] - The company reported earnings per share (EPS) of $4.13 for the thirteen weeks ended September 28, 2024, compared to a loss per share of $(2.34) in the same period last year[15] - Total sales for the thirty-nine weeks ended September 28, 2024, were $2,178,782, a slight decrease from $2,182,271 for the same period in 2023[19] - Net earnings for the thirty-nine weeks ended September 30, 2023, were $114,888, with diluted earnings per share of $5.40[25] Segment Performance - Infrastructure segment sales were $758.6 million, with utility sales growing nearly 15% due to a favorable project mix[5][6] - Agriculture segment sales decreased by 11.1% year over year to $265.3 million, impacted by lower grain prices and reduced volumes in North America and Brazil[8] - Operating income for the Agriculture segment was $28.9 million, or 11.0% of net sales, compared to an operating loss of ($99.7) million in Q3 2023[9] - Infrastructure segment net sales increased slightly to $756,370 for the thirteen weeks ended September 28, 2024, from $753,626 in the prior year, with a gross profit margin improvement to 29.5%[16] - Agriculture segment net sales decreased to $263,805 for the thirteen weeks ended September 28, 2024, down from $296,669 in the same period last year, with a gross profit margin decline to 29.7%[16] Cash Flow and Debt Management - The company reduced borrowings on its revolving credit facility by approximately $120 million this quarter, totaling a year-to-date reduction of approximately $210 million[10] - Cash flows from operating activities for the thirty-nine weeks ended September 28, 2024, were $379,264, compared to $190,868 for the same period in 2023[22] - Cash and cash equivalents at the end of the period were $200,477, down from $203,041 at the beginning of the period[22] Assets and Liabilities - Total assets increased to $3,496,828 as of September 28, 2024, from $3,477,448 as of December 30, 2023[21] - Total liabilities decreased to $1,909,024 as of September 28, 2024, from $2,060,376 as of December 30, 2023[21] Impairment and Charges - The company incurred impairment charges of $140,844 in the previous year, which were not repeated in the current quarter, contributing to improved operating results[15] - The company experienced an impairment of goodwill and other intangible assets amounting to $140,844 during the thirteen weeks ended September 30, 2023[25] - Impairment of goodwill and other intangible assets totaled $140,844 million[29] - Realignment charges amounted to $4,180 million during the period[29] Strategic Focus - The company plans to focus on realignment strategies following significant adjustments related to the Prospera segment[24]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Valmont Industries (VMI) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][6]. Earnings Growth - Valmont Industries has a historical EPS growth rate of 20.5%, with projected EPS growth of 12.8% for the current year, significantly outperforming the industry average of -11.7% [3]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 7.7%, surpassing the industry average of 6.8%. Additionally, Valmont's annualized cash flow growth rate over the past 3-5 years stands at 9.1%, compared to the industry average of 6.8% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Valmont, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month, indicating favorable near-term stock price movements [5]. Overall Positioning - Valmont Industries holds a Zacks Rank of 1 (Strong Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [6].

Core Viewpoint - Valmont Industries has shown significant stock performance, with an 11.2% increase over the past month and a 33.1% rise since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Steel - Pipe and Tube industry [1] Financial Performance - Valmont has consistently exceeded earnings expectations, reporting an EPS of $4.76 against a consensus estimate of $4.04 in its last earnings report [2] - For the current fiscal year, Valmont is projected to achieve earnings of $16.88 per share on revenues of $4.05 billion, reflecting a 12.68% increase in EPS despite a 2.93% decline in revenues [2] - The next fiscal year forecasts an EPS of $17.74 and revenues of $4.18 billion, indicating year-over-year changes of 5.11% and 3.09%, respectively [2] Valuation Metrics - Valmont's stock trades at 18.4 times the current fiscal year EPS estimates, which is above the peer industry average of 17.8 times [4] - On a trailing cash flow basis, the stock is valued at 15.6 times compared to the peer group's average of 11.5 times, suggesting it is not among the top value stocks [4] Zacks Rank and Style Scores - Valmont holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, indicating strong potential for future performance [5] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B, which aligns with investment strategies favoring stocks with strong growth potential [3][5]

Core Insights - The global precision irrigation market was valued at approximately US$3 Billion in 2023 and is projected to grow to US$4.1 Billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030 [1][13]. Market Overview - Precision irrigation is an advanced agricultural technique that optimizes water application based on real-time data and specific field conditions, contrasting with traditional methods that apply water uniformly [2]. - The technology encompasses various systems such as sprinkler, drip, and boom systems, utilizing sensors, GPS, satellite imagery, and data analytics to enhance water management [2][3]. Technological Advancements - The integration of IoT devices and wireless sensor networks has improved the accuracy of soil moisture monitoring, enabling real-time irrigation decisions [3]. - Advanced algorithms and machine learning models are utilized to predict irrigation needs based on crop type, growth stage, and weather forecasts [3][4]. - Satellite and drone imagery facilitate precise mapping of field variability, enhancing the efficiency and accessibility of precision irrigation [4]. Applications and Benefits - Precision irrigation is applied across various sectors, including arable farming, horticulture, and viticulture, optimizing water use for crops and supporting high-value crop production [5]. - Key benefits include water conservation, improved crop yield and quality, reduced energy and labor costs, and minimized environmental impact [6]. Market Growth Drivers - The market growth is driven by increasing awareness of water scarcity and the need for sustainable water management in agriculture [7]. - Technological advancements that enhance irrigation system efficiency and automation are significant contributors to market expansion [8]. - Government initiatives promoting water conservation and advanced agricultural technologies further support market growth [8]. Regional Insights - The U.S. precision irrigation market was estimated at approximately US$818.5 Million in 2023, while China's market is forecasted to grow at a CAGR of 7.3% to reach US$861.7 Million by 2030 [9]. - The crop-based application segment is expected to reach US$3.6 Billion by 2030, growing at a CAGR of 4.6%, while the non-crop-based application segment is projected to grow at a 3.0% CAGR [9]. Key Players - Major players in the precision irrigation market include Agsmart Pty Ltd., EPC Industrie' Ltd., Grodan (ROCKWOOL B.V.), Jain Irrigation Systems Ltd., and others [16].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various research services [1] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Style Score assesses trends in stock prices and earnings outlooks, using factors like one-week price change and monthly earnings estimate changes [3] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [4] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in portfolio creation [5] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [5] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [6] Company Spotlight: Valmont Industries - Valmont Industries, headquartered in Omaha, NE, specializes in fabricated metal products and mechanized irrigation systems [8] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a Momentum Style Score of B [8] - Valmont's shares have increased by 2.1% over the past four weeks, and its earnings estimate for fiscal 2024 has risen by $0.24 to $16.88 per share [8]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scor ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics [2][3][4] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to help investors build successful portfolios [5][6] Zacks Style Scores - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [2] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [3] - The Momentum Score indicates favorable times to invest in high-momentum stocks based on price changes and earnings estimate trends [3] - The VGM Score combines all three Style Scores to provide a comprehensive indicator for stock selection [4] Zacks Rank and Style Scores Integration - Stocks with a Zacks Rank of 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [6] Company Spotlight: Valmont Industries (VMI) - Valmont Industries is engaged in producing fabricated metal products and mechanized irrigation systems, with a Zacks Rank of 3 (Hold) and a VGM Score of A [7] - The company forecasts a year-over-year earnings growth of 12.7% for the current fiscal year, supported by positive earnings estimate revisions [7] - Valmont Industries has an average earnings surprise of 15.9%, making it a potential pick for growth investors [7]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Scor ...

Valmont Industries (VMI) reported $1.04 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.6%. EPS of $4.76 for the same period compares to $4.37 a year ago.The reported revenue represents a surprise of -1.45% over the Zacks Consensus Estimate of $1.06 billion. With the consensus EPS estimate being $4.04, the EPS surprise was +17.82%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...