Why Is Valmont (VMI) Up 4.5% Since Last Earnings Report?

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]