NYSE$VMI

Valmont Industries Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Achieved record first-quarter sales and earnings per share.

Valmont Industries reported a strong first quarter in 2022, achieving record net sales of $980.8 million, a 26.6% increase compared to the first quarter of 2021. The company's diluted earnings per share (EPS) also reached a record of $2.90 ($3.07 adjusted).

  • First Quarter Record Net Sales increased 26.6% to $980.8 million.
  • Operating Income increased to $94.8 million, or 9.7% of net sales compared to $77.2 million or 10.0% of net sales.
  • First Quarter Record Diluted Earnings per Share (EPS) of $2.90 compared to $2.57.
  • Record backlog of $1.8 billion, reflecting improved pricing and continued strong market demand across the portfolio.

Headline financials

Total Revenue

$981M

Previous: $775M+26.6%
EPS (adj)

$3.07

Previous: $2.57+19.5%
Operating Income as % of Net Sales

9.7%

Previous: 10.0%-3.0%
Capital Expenditures

-$27.1M

Previous: -$27.6M+1.7%
Free Cash Flow

$35.8M

Previous: $27.4M+30.5%
Net Income

$62.9M

Previous: $55M+14.4%
Operating Income

$94.8M

Previous: $77.2M+22.8%
Gross Profit

$249M

Previous: $205M+21.8%
Cash & Equivalents

$150M

Previous: $391M-61.8%
Total Assets

$3.58B

Previous: $3.01B+19.1%
Stock-Based Comp

$9.46M

Previous: $4.67M+102.6%

Revenue & EPS history

Valmont · Revenue · Quarterly

$981M

Q1 2022+26.6%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The Company is increasing its 2022 full-year net sales and diluted earnings per share outlook from the previous indications that were communicated last quarter, and is providing key assumptions for the year.

Tailwinds

  • We've had a very strong start to the year, as our teams have continued to execute from a position of strength to drive growth and performance, with significant momentum supported by strong, global market drivers across our businesses.
  • We entered the second quarter with a record backlog of more than $1.8 billion, reflecting strong market demand and providing a solid line of sight for us through 2022.
  • In the Infrastructure segment, the need for critical infrastructure investment globally gives us confidence in the long-term market growth trends.
  • In Agriculture, favorable market trends globally are providing strong momentum.
  • Across the portfolio, we continue to execute pricing strategies to manage broad-based inflation and leverage the strength of our organization and global supply chain to deliver value-added products and innovative solutions to our customers.

Headwinds

  • 2022 tax rate of approximately 26.5% due to the expected geographic mix of earnings
  • Capital expenditures to be in the range of $110.0 - $120.0 million to support strategic growth and Industry 4.0 advanced manufacturing initiatives
  • No expected foreign currency translation impact on net sales vs. prior year
  • Tax rate ~ 25.0% Previous Outlook
  • FX Translation Impact on Net Sales~ 1.0% Previous Outlook

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+19.4%

Q1 2024

Best reaction

-13.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.9%+21.7%+23.4%
Q4 2025-6.6%-0.9%-16.6%
Q3 2025+1.6%+2.2%-7.3%
Q2 2025+3.1%+1.6%+5.1%
Q1 2025+3.2%+8.7%+16.0%
Q4 2024+17.5%+8.8%+1.8%
Q3 2024+7.8%+5.0%+12.2%
Q2 2024+8.3%+8.0%+4.5%
Q1 2024+19.4%+21.0%+22.8%
Q4 2023-3.0%-4.9%-2.4%
Q3 2023-13.5%-16.1%-7.9%
Q2 2023-8.0%-6.4%-12.7%
Q1 2023+3.3%-0.7%-3.4%
Q4 2022-6.7%-2.8%-3.7%
Q3 2022+1.9%+4.1%+11.0%
Q2 2022+7.9%+8.2%+22.8%
Q1 2022+7.5%+7.1%+0.7%
Q4 2021-1.2%-3.4%+8.3%
Q3 2021-5.3%-4.9%+4.5%
Q2 2021+0.8%+1.0%+4.5%
Q1 2021+1.1%+5.7%+6.1%
Q4 2020-1.0%+1.6%+5.9%
Q3 2020+6.8%+6.4%+16.6%
Q2 2020+6.1%+6.7%+6.2%
Q1 2020+11.5%+12.1%+1.2%
Q4 2019-11.1%-20.9%-40.4%
Q3 2019-4.4%-2.1%+0.8%
Q2 2019+8.7%+8.2%+6.1%
Q4 2018-0.8%-1.2%-6.3%
Q3 2018-10.8%-9.8%-2.7%
Q2 2018-0.6%-1.7%+0.5%
Q1 2018+1.7%+0.9%+0.8%
Q4 2017-3.4%-4.5%-9.2%
Q3 2017+1.5%+0.0%+2.4%
Q2 2017+4.7%+2.6%-1.6%
Q1 2017+2.3%-0.6%-1.6%
Q4 2016+8.8%+10.2%+5.5%
Q3 2016-1.0%+0.7%+9.2%
Q2 2016-3.5%-5.2%-3.1%
Q1 2016+11.1%
Q4 2015+1.7%
Q3 2015+11.8%
Q2 2015-3.0%
Q1 2015+4.0%
Q4 2014-2.1%
Q3 2014-1.8%
Q2 2014-1.0%
Q1 2014-5.8%
Q4 2013-3.6%
Q3 2013+1.3%
Q2 2013+1.9%
Q1 2013+2.5%
Q4 2011+3.1%
Q4 2012+5.7%
Q3 2012+2.3%
Q2 2012-5.8%
Q1 2012+0.6%
Q3 2011+3.4%
Q2 2011-1.0%
Q1 2010+0.2%
Q1 2011-0.3%
Q4 2008-2.9%
Q4 2010-2.9%
Q3 2009-1.3%
Q3 2010-1.3%
Q2 2010-1.6%
Q2 2009-1.6%
Q4 2009-1.6%

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