NYSE$VMI

Valmont Industries Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Valmont's third quarter results reflected net sales aligned with expectations and strong operating cash flows.

Valmont Industries reported a decrease in net sales by 2.9% to $1.0 billion, but increased operating income to $125.7 million. The company generated strong operating cash flows of $225.1 million and reaffirmed its full-year financial outlook.

  • Net sales decreased by 2.9% to $1.0 billion due to lower sales in Solar and international Agriculture.
  • Operating income increased to $125.7 million, representing 12.3% of net sales.
  • Diluted earnings per share (EPS) was $4.11, compared to a diluted loss per share of ($2.34) in the same quarter last year.
  • Operating cash flows were strong at $225.1 million, with cash and cash equivalents of $200.5 million at quarter-end.

Headline financials

Total Revenue

$1.02B

Previous: $1.05B-2.9%
EPS

$4.11

Previous: $4.12-0.2%
Gross Profit as % of Net Sales

29.6%

No prior period
Operating Income as % of Net Sales

12.3%

Previous: -2.3%+634.8%
Cash Dividends per Share

$0.60

No prior period
Total Backlog

$1.44B

No prior period
Capital Expenditures

-$53.8M

Previous: -$71.2M+24.4%
Free Cash Flow

$29.2M

Previous: -$122M+124.1%
Net Income

$83.1M

Previous: -$50.3M+265.1%
Operating Income

$126M

Previous: -$24.2M+619.8%
Gross Profit

$302M

Previous: $315M-4.3%
Cash & Equivalents

$200M

Previous: $173M+16.2%
Total Assets

$3.5B

Previous: $3.49B+0.3%
Stock-Based Comp

$7.56M

Previous: $8.95M-15.6%

Revenue & EPS history

Valmont · Revenue · Quarterly

$1.02B

Q3 2024-2.9%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is reaffirming its full-year 2024 net sales and diluted earnings per share outlook that was provided in the second quarter.

Tailwinds

  • Net sales change (vs. prior year) of (3.5%) to (1.5%)
  • Infrastructure net sales growth of Flat to 1.5% vs. prior year
  • Diluted earnings per share of $16.50 to $17.30
  • Effective tax rate expected to be slightly below 26%
  • Minimal expected foreign currency translation impact on net sales

Headwinds

  • Agriculture net sales expected to decrease (15.0%) to (10.0%) vs. prior year
  • For cash flow purposes, capital expenditures now expected to be in the range of $85.0 to $95.0 million to support strategic growth initiatives (vs. prior expectation of $95.0 to $110.0 million)
  • The company's net sales decreased by 2.9%
  • Lower sales in Solar and international Agriculture, specifically Brazil
  • North American and Brazilian markets remain muted

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 Q3 2024

Historical avgQ3 2024

+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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