NYSE$VMI

Valmont Industries Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Expanded operating margins and record earnings per share were achieved.

Valmont Industries reported a decrease in net sales by 7.9% to $1.0 billion, but demonstrated strong performance through expanded operating margins and record earnings per share of $4.21. The company's operating income increased by 12.6% to $133.7 million, representing 12.8% of net sales. Despite softer demand in North America agriculture and telecommunications markets, Valmont maintained disciplined pricing strategies and solid execution by global teams.

  • Net Sales decreased by 7.9% to $1.0 billion.
  • Operating Income increased by 12.6% to $133.7 million, or 12.8% of net sales.
  • Diluted Earnings per Share (“EPS”) grew to $4.21.
  • Generated solid operating cash flows of $88.3 million.

Headline financials

Total Revenue

$1.05B

Previous: $1.14B-7.9%
EPS (adj)

$4.37

Previous: $3.70+18.1%
Operating Income as % of Net Sales

12.8%

Previous: 10.5%+21.9%
Capital Expenditures

-$45.4M

Previous: -$49.7M+8.6%
Free Cash Flow

$43.4M

Previous: $27.5M+57.7%
Net Income

$88.8M

Previous: $77.2M+15.0%
Operating Income

$134M

Previous: $119M+12.6%
Gross Profit

$329M

Previous: $293M+12.6%
Cash & Equivalents

$167M

Previous: $155M+8.0%
Total Assets

$3.62B

Previous: $3.67B-1.6%
Stock-Based Comp

$11.2M

Previous: $10.1M+10.3%

Revenue & EPS history

Valmont · Revenue · Quarterly

$1.05B

Q2 2023-7.9%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Valmont updated its full-year net sales growth outlook to 0% to 2% but maintained its diluted earnings per share outlook.

Tailwinds

  • Expect full-year operating margin improvement compared to 2022.
  • Long-term need for critical infrastructure investment globally supporting multi-year market growth.
  • Strong backlog reflecting robust demand and customer trust.
  • International agriculture market demand remains strong.
  • Expect profitable growth across the portfolio with full-year 2023 adjusted operating margins approaching 12%.

Headwinds

  • Near-term softness in North America agriculture and telecommunications markets.
  • Capex spending by wireless carriers more aligned with historical trends following record levels of investment.
  • Modestly lower sales expected in North America agriculture in the second half of the year compared to the first half.
  • Growers taking a wait-and-see approach to purchasing decisions.
  • Outcomes of the fall harvest should provide more clarity on farmer sentiment and expected buying patterns.

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 Q2 2023

Historical avgQ2 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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