NYSE$VMI

Valmont Industries Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record annual sales and solid fourth-quarter performance, managing operations effectively amidst inflation and supply chain challenges.

Valmont Industries reported a strong fourth quarter and full year 2021, achieving record annual sales of $3.5 billion. The company's Q4 net sales increased by 20.7% to $963.3 million, driven by growth in all segments, particularly Irrigation. Adjusted operating income grew by 24.4% year-over-year, and adjusted diluted earnings per share increased by 26.0%.

  • Record net sales of $963.3 million, a 20.7% increase, with growth across all segments.
  • Operating income of $50.8 million, or 5.3% of sales, compared to $54.1 million, or 6.8% of sales in Q4 2020.
  • Diluted EPS of $1.25 compared to $1.68 in Q4 2020.
  • Record year-end backlog of more than $1.6 billion, a 40.0% increase since the end of fiscal 2020.

Headline financials

Total Revenue

$963M

Previous: $798M+20.7%
EPS (adj)

$2.73

Previous: $2.20+24.1%
Gross Profit as % of Net Sales

23.1%

No prior period
Operating Income as % of Net Sales

5.3%

No prior period
Capital Expenditures

$27.3M

Previous: $35.7M-23.7%
Free Cash Flow

-$23.2M

Previous: $7.51M-408.6%
Net Income

$26.9M

Previous: $35.8M-25.0%
Operating Income

$50.8M

Previous: $54.1M-6.3%
Gross Profit

$222M

Previous: $205M+8.7%
Cash & Equivalents

$177M

Previous: $401M-55.8%
Total Assets

$3.45B

Previous: $2.95B+16.7%
Stock-Based Comp

$10.8M

Previous: $6.14M+76.4%

Revenue & EPS history

Valmont · Revenue · Quarterly

$963M

Q4 2021+20.7%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Valmont is increasing its 2022 full-year net sales and diluted earnings per share outlook. Net Sales are estimated to be $3.8 - $4.0 billion, an increase of 9.0% - 14.0% vs. prior year. Diluted Earnings per Share are estimated to be $11.55 - $12.30 GAAP ($12.25 - $13.00 adjusted).

Tailwinds

  • Record backlog of more than $1.6 billion reflects strong global market demand.
  • Customers' confidence in the ability to deliver products and innovative solutions.
  • Implementation of pricing strategies to recover the impact of broad-based inflation.
  • Strong balance sheet and cash flows provide flexibility to execute the long-term strategic plan.
  • Focus on long-term growth, with an emphasis on ESG principles, return on invested capital, operational excellence, and recurring technology revenue.

Headwinds

  • Unfavorable foreign currency translation impact of approximately 1.0% of Net Sales
  • Tax rate of approximately 25.0%
  • Capital expenditures to be in the range of $110.0 - $120.0 million to support strategic growth initiatives and Industry 4.0 advanced manufacturing initiatives

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 2021

Historical avgQ4 2021

+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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