NYSE$VMI

Valmont Industries Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Valmont achieved record results and provided positive full year net sales and EPS guidance.

Valmont Industries reported strong Q4 2022 results with record net sales of $1.1 billion, a 17.5% increase year-over-year. Operating income increased by 116.2% to $109.7 million. Diluted EPS was reported at $1.86 ($3.57 adjusted). The company also provided a positive 2023 full-year net sales and EPS guidance.

  • Net Sales of $1.1 billion increased 17.5%, a fourth quarter record.
  • Operating Income increased 116.2% to $109.7 million, or 9.7% of net sales.
  • Diluted Earnings per Share (“EPS”) of $1.86 ($3.57 adjusted) compared to $1.25 ($2.73 adjusted).
  • Generated strong operating cash flows of $142.5 million.

Headline financials

Total Revenue

$1.13B

Previous: $963M+17.5%
EPS (adj)

$3.57

Previous: $2.73+30.8%
Operating Income as % of Net Sales

9.7%

Previous: 5.3%+83.0%
Capital Expenditures

$26.2M

Previous: $27.3M-4.1%
Free Cash Flow

$116M

Previous: -$23.2M+602.2%
Net Income

$40.3M

Previous: $26.9M+50.2%
Operating Income

$110M

Previous: $50.8M+116.2%
Gross Profit

$299M

Previous: $222M+34.5%
Cash & Equivalents

$185M

Previous: $177M+4.6%
Total Assets

$3.56B

Previous: $3.45B+3.2%
Stock-Based Comp

$11.9M

Previous: $10.8M+9.5%

Revenue & EPS history

Valmont · Revenue · Quarterly

$1.13B

Q4 2022+17.5%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Valmont provided its 2023 full-year net sales and diluted earnings per share outlook and key assumptions for the year.

Tailwinds

  • Opportunity to drive multi-year revenue and profitability growth.
  • Strong market drivers across businesses.
  • Proven track record of execution.
  • Backlog of $1.7 billion.
  • Strong balance sheet, giving flexibility to execute on strategies.

Headwinds

  • Net Sales Growth (vs. PY) of 4% to 7%, which reflects the divestiture of the offshore wind energy structures business
  • GAAP Diluted Earnings per Share of $14.70 to $15.25 ($15.35 to $15.90 adjusted)
  • Effective tax rate of 28% to 29%, primarily due to expected geographic mix of earnings
  • Minimal expected foreign currency translation impact to net sales
  • Capital expenditures expected to be in the range of $105 to $125 million to support strategic growth and digital transformation 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 2022

Historical avgQ4 2022

+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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