NYSE$VMI

Valmont Industries Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Valmont achieved record results driven by strong market demand and disciplined pricing strategies and raised full-year guidance.

Valmont Industries reported record first-quarter results, with net sales reaching $1.1 billion, an 8.3% increase year-over-year. Operating income increased by 24.9% to $118.5 million, and diluted EPS grew to $3.47. The company also raised its full-year earnings guidance, reflecting confidence in continued growth and market demand.

  • Net sales increased by 8.3% to $1.1 billion, with a 10.4% increase excluding the 2022 "Other" segment.
  • Operating income rose by 24.9% to $118.5 million, representing 11.1% of net sales.
  • Diluted EPS increased to $3.47, compared to $2.90 in the first quarter of 2022.
  • The company secured an $85 million order for mechanized irrigation equipment in Africa.

Headline financials

Total Revenue

$1.06B

Previous: $981M+8.3%
EPS (adj)

$3.61

Previous: $3.07+17.6%
Operating Income as % of Net Sales

11.1%

Previous: 9.7%+14.4%
Capital Expenditures

-$22.4M

Previous: -$27.1M+17.5%
Free Cash Flow

$50M

Previous: $35.8M+39.6%
Net Income

$72.3M

Previous: $62.9M+15.0%
Operating Income

$118M

Previous: $94.8M+24.9%
Gross Profit

$309M

Previous: $249M+23.8%
Cash & Equivalents

$173M

Previous: $150M+15.5%
Total Assets

$3.6B

Previous: $3.58B+0.6%
Stock-Based Comp

$8.69M

Previous: $9.46M-8.2%

Revenue & EPS history

Valmont · Revenue · Quarterly

$1.06B

Q1 2023+8.3%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Valmont is raising its full-year diluted earnings per share outlook from the previous indications that were communicated last quarter and is providing updated key assumptions for the year.

Tailwinds

  • Strong market drivers across businesses.
  • Proven track record of execution.
  • Backlog of $1.6 billion.
  • Long-term need for critical infrastructure investment globally.
  • Favorable global agriculture market trends.

Headwinds

  • Difficult sales comparisons expected in the Agriculture segment due to international project timing.
  • Last year’s ongoing delivery of considerable levels of backlog.
  • Continued elevated inflation.
  • Raw material costs aligned with current price projections.
  • Ongoing R&D investments

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 2023

Historical avgQ1 2023

+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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