Yahoo Finance Valmont Industries, Inc. Just Beat EPS By 33%: Here's What Analysts Think Will Happen Next
Shareholders of Valmont Industries, Inc. (NYSE:VMI) will be pleased this week, given that the stock price is up 17% to US$246 following its latest first-quarter results. It looks like a credible result overall - although revenues of US$978m were what the analysts expected, Valmont Industries surprised by delivering a (statutory) profit of US$4.32 per share, an impressive 33% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Valmont Industries
Following last week's earnings report, Valmont Industries' five analysts are forecasting 2024 revenues to be US$4.14b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 105% to US$15.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.08b and earnings per share (EPS) of US$14.71 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.3% to US$288. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Valmont Industries, with the most bullish analyst valuing it at US$300 and the most bearish at US$280 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Valmont Industries' revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Valmont Industries.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Valmont Industries' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Valmont Industries going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for Valmont Industries that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
