Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which look ...

Have you been paying attention to shares of Valmont Industries (VMI) ? Shares have been on the move with the stock up 10.3% over the past month. The stock hit a new 52-week high of $307.67 in the previous session. Valmont Industries has gained 29.6% since the start of the year compared to the 8.7% move for the Zacks Industrial Products sector and the 2.2% return for the Zacks Steel - Pipe and Tube industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it h ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $1 billion, similar to the previous year, while operating income increased by 10.2% to $147.3 million, resulting in operating margins improving to 14.2% of net sales [20][21] - Diluted earnings per share rose to $4.91, a 16.6% increase year-over-year, which included a tax benefit of approximately $3 million [20][21] Business Line Data and Key Metrics Changes - Infrastructure segment sales decreased by 1% year-over-year to $762.7 million, with higher volumes in utility but a shift towards distribution and substation products impacting sales growth [21] - Agriculture segment sales grew slightly to $281.7 million, driven by increased replacement sales in North America due to severe weather, although international sales decreased primarily due to lower demand in Brazil [22][23] Market Data and Key Metrics Changes - In North America, severe weather events drove strong demand for replacement equipment, while international markets showed mixed results, with Brazil experiencing continued softness [8][12] - The outlook for the Infrastructure business remains strong, driven by elevated CapEx spending and a multi-year energy transition, while the Agriculture segment faces challenges due to declining net farm income and lower grain prices [10][12] Company Strategy and Development Direction - The company is focusing on enhancing profitability and return on invested capital by adjusting production to meet customer needs and implementing strategic pricing actions [8][9] - A refined strategy is being executed to concentrate growth on areas that align with core competencies, with a focus on customer needs and operational excellence [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market dynamics and long-term megatrends, emphasizing the importance of sustainability and innovation in driving future growth [17][18] - The outlook for 2024 has been revised, with expected sales declines in certain segments but an increase in diluted earnings per share forecasted [25][27] Other Important Information - The company reported strong cash flows and a solid balance sheet, with a focus on capital allocation strategies that balance growth investments with returning cash to shareholders [24][25] - Sustainability remains a core focus, with the company surpassing three of its four stated environmental goals for 2025 [17][18] Q&A Session Summary Question: Can you elaborate on the strategic adjustments in the solar business? - Management decided to exit commoditized solar products where they cannot add value, focusing instead on distributed generation (DG) where they have seen a 30% year-over-year revenue increase [32][34] Question: How does the mix between North America and International Agriculture sales look? - North America sales are expected to decrease mid-single digits, while international sales are projected to decline slightly more than 15% due to lower grain prices impacting buying behavior [38][39] Question: What are the expectations regarding pricing and input costs? - Management plans to maintain pricing leadership and does not foresee broad-based pricing reductions, despite lower input costs from steel [42][43] Question: What is the outlook for the Infrastructure segment's margins? - The company expects to sustain improved margins due to strong market demand and internal efficiency measures, with a focus on continuous improvement [46][47] Question: What is the status of the telecom business? - There are signs of stabilization in the telecom sector, with expectations for growth in the second half of the year as carriers focus on increasing capacity [51] Question: Can you discuss the project pipeline in Agriculture? - The company has a strong project pipeline driven by food security and water scarcity, particularly in the Middle East and North Africa, which is expected to offset weaknesses in North America and Brazil [54][55]

Valmont Industries, Inc. (VMI) reported a second-quarter 2024 profit of roughly $99.7 million or $4.91 per share, up from $89.4 million or $4.21 per share in the year-ago quarter.Barring one-time items, adjusted earnings per share were $4.76, beating the Zacks Consensus Estimate of $4.04.The upside in earnings can be attributed to pricing actions, cost management and operational efficiencies.The company’s revenues were $1,039.7 million in the quarter, down 0.6% year over year. The top line lagged the Zacks ...

Valmont Industries (VMI) came out with quarterly earnings of $4.76 per share, beating the Zacks Consensus Estimate of $4.04 per share. This compares to earnings of $4.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.82%. A quarter ago, it was expected that this infrastructure equipment maker would post earnings of $3.24 per share when it actually produced earnings of $4.32, delivering a surprise of 33.33%.Over the last fo ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Renee Campbell Email: renee.campbell@valmont.com Date: July 24, 2024 Valmont Reports Second Quarter 2024 Results and Raises Full-Year 2024 Diluted Earnings per Share Guidance OMAHA, Neb.-- Valmont® Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the second quarter ended June 29, 2024. President and Chief Executiv ...

Core Viewpoint - Valmont Industries (VMI) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Valmont's earnings per share (EPS) for the fiscal year ending December 2024 is projected to be $15.96, reflecting a year-over-year increase of 6.5% [5]. - Over the past three months, the Zacks Consensus Estimate for Valmont has risen by 7.1%, indicating a trend of increasing earnings estimates [5]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making earnings estimate revisions a critical factor for investment decisions [3][4]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Institutional Investor Influence - Institutional investors play a role in the relationship between earnings estimates and stock prices, as they adjust their valuations based on earnings estimates, leading to significant stock transactions that affect price movements [3]. Positioning in the Market - The upgrade to Zacks Rank 1 places Valmont in the top 5% of Zacks-covered stocks, suggesting a strong potential for stock price appreciation in the near term [7].

Company Overview - Valmont Industries (VMI) shares increased by 3.4% to $264.81 in the last trading session, contrasting with a 1.6% loss over the past four weeks [1] - The stock's rally is attributed to optimism regarding high demand in the utility market and ongoing global investments in energy transition [1] - Valmont is expected to benefit from commercial strategies, improved operational efficiencies, and strategic cost-saving measures [1] Earnings Expectations - Valmont is projected to report quarterly earnings of $4.04 per share, reflecting a year-over-year decrease of 7.6% [1] - Revenue expectations stand at $1.05 billion, which is a 0.7% increase from the same quarter last year [1] Market Sentiment - The consensus EPS estimate for Valmont has been revised 1.2% lower in the last 30 days, indicating a negative trend in earnings estimate revisions [2] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, suggesting caution for future stock performance [2] - Valmont currently holds a Zacks Rank of 1 (Strong Buy), indicating strong market sentiment [2] Industry Comparison - Valmont is part of the Zacks Steel - Pipe and Tube industry, where another company, Mueller Water Products (MWA), saw a 0.9% increase in its stock price to $17.68, but has returned -9.1% over the past month [2] - Mueller Water Products has an unchanged consensus EPS estimate of $0.22, representing a year-over-year increase of 22.2%, and holds a Zacks Rank of 2 (Buy) [3]

Investment Thesis - Valmont Industries is positioned for medium to long-term growth, with expected revenue recovery driven by increased orders in North America and a strong project pipeline in the Middle East [2] - The infrastructure segment is anticipated to benefit from rising investments in electricity infrastructure and easing comparisons in the Telecom business [2][10] - The company has a healthy balance sheet, allowing for potential bolt-on acquisitions to enhance organic growth [2][10] Revenue Analysis and Outlook - In Q1 2024, Valmont's total net sales declined 8% year-over-year to $978 million, with a 1.7% decline in Infrastructure sales and a 22.6% decrease in Agricultural sales [4][5] - The company noted an increase in orders year-over-year in Q1 2024, indicating potential near-term growth [4][10] - Recent project wins in the Middle East, including $50 million in contracts, are expected to support revenue growth [4][10] Margin Analysis and Outlook - The company's operating margin improved by 240 basis points year-over-year to 13.5% in Q1 2024, driven by cost savings and operational efficiency [11][14] - The Infrastructure segment saw a 350 basis point increase in operating margin to 16.4%, while the Agriculture segment experienced a slight decline [11][14] - Continued cost reduction initiatives are expected to benefit margins in the upcoming quarters [14] Valuation - Valmont is currently trading at a discount to its historical P/E average, with a P/E of 16.26x for FY24 and 15.24x for FY25, compared to a 5-year historical average of 19.2x [15] - A potential re-rating of the stock's P/E multiple is anticipated as revenue growth recovers in FY25, with a target price of $326.59 based on FY25 consensus EPS estimates [15]

Valmont Industries, Inc. (VMI) generated adjusted earnings per share (EPS) of $4.32 in first-quarter 2024, up from $3.47 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.24.The company’s revenues were $977.8 million in the quarter, down 8% year over year. The top line missed the Zacks Consensus Estimate of $981.6 million.The company managed to increase its profit margins year over year on lower sales through successful commercial strategies, enhanced operational efficiencies ...