NYSE$VMI

Valmont Industries Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Valmont experienced sales and earnings growth driven by strong demand in Utility Support Structures and Irrigation segments.

Valmont Industries reported a 16.8% increase in net sales, led by Irrigation and Utility Support Structures. Diluted EPS improved to $1.68 ($2.20 adjusted). The company recognized a favorable tax rate and a record year-end backlog of over $1.1 billion.

  • Net Sales increased 16.8% driven by Irrigation and Utility Support Structures.
  • Diluted Earnings per Share (EPS) improved to $1.68 ($2.20 adjusted).
  • Record year-end backlog of more than $1.1 billion, reflecting strong market demand.
  • Commenced shipments for the Egypt market irrigation project.

Headline financials

Total Revenue

$798M

Previous: $684M+16.8%
EPS (adj)

$2.20

Previous: $1.66+32.5%
Capital Expenditures

$35.7M

Previous: $25.4M+40.5%
Free Cash Flow

$7.51M

Previous: $42.9M-82.5%
Net Income

$35.8M

Previous: $35.7M+0.2%
Operating Income

$54.1M

Previous: $55M-1.6%
Gross Profit

$205M

Previous: $171M+19.7%
Cash & Equivalents

$401M

Previous: $354M+13.3%
Total Assets

$2.95B

Previous: $2.81B+5.2%
Stock-Based Comp

$6.14M

Previous: $2.7M+127.5%

Revenue & EPS history

Valmont · Revenue · Quarterly

$798M

Q4 2020+16.8%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Valmont anticipates net sales to increase by 9.0% - 14.0% and diluted earnings per share to be $9.00 - $9.70 for the full year 2021.

Tailwinds

  • Expect to benefit from market tailwinds across global markets.
  • Backlog in the Utility Support Structures segment remains at elevated levels.
  • Growing demand in wireless communications markets as 5G build-outs continue to ramp.
  • The large, multi-year project for Egypt and favorable market trends globally are providing strong momentum in Irrigation.
  • Implemented pricing strategies to recover the impact of unprecedented raw material cost increases.

Headwinds

  • Certain aspects of the pandemic's impact on global economic factors and pace of economic recovery remain uncertain.
  • Significant raw material cost inflation will negatively impact gross profit margins in the Utility Support Structures in the first half of 2021.
  • Tax rate between 24.0% - 25.0%.
  • Potential adjustments to the 2021 financial outlook in future quarters.
  • Divest the Access Systems product line.

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 Q4 2020

Historical avgQ4 2020

+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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