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Earnings Review and Free Research Report: Valmont Industries’ EPS Surged 25%; Beat Expectations

Research Desk Line-up: ARC Group Worldwide Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Valmont Industries, Inc. (NYSE: VMI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=VMI, following the Company's release of its financial results on October 18, 2017, for the third quarter of the fiscal year 2017. The Company's net revenues increased 11.5% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Metal Fabrication industry. Pro-TD has currently selected ARC Group Worldwide, Inc. (NASDAQ: ARCW) for due-diligence and potential coverage as the Company announced on September 26, 2017, its financial results for Q4 FY17 and FY17. Register for a free membership today, and be among the early birds that get access to our report on ARC Group Worldwide when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VMI; also brushing on ARCW. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended September 30, 2017, Valmont Industries' net revenue increased 11.5% to $680.78 million from $610.25 million in Q3 FY16. The net revenue figures surpassed analysts' expectations of $655 million.

During Q3 FY17, the Company's gross profit increased 5.5% to $163.59 million from $155.02 million in the same period of last year. For the reported quarter, the Company's gross margin decreased 140 basis points to 24% of revenue from 25.4% of revenue in Q3 FY16.

For the reported quarter, Valmont Industries' selling, general, and administrative expenses (SG&A) increased 1.8% to $103.67 million from $101.78 million in Q3 FY16.

During Q3 FY17, Valmont Industries' operating income increased 12.5% to $59.92 million from $53.24 million in Q3 FY16, due to a sales increase driven by improved profitability in the Utility Support Structures, Irrigation, and Coatings Segments. For the reported quarter, the Company's operating margin increased 10 basis points to 8.8% of revenue from 8.7% of revenue in Q3 FY16. During Q3 FY17, the Company's adjusted operating margin decreased 80 basis points to 8.8% of revenue from 9.6% of revenue in the comparable period of last year.

For the reported quarter, Valmont Industries' net income increased 24.9% to $35.21 million on a y-o-y basis from $28.17 million in Q3 FY16. During Q3 FY17, the Company's adjusted net income increased 6.3% to $35.60 million on a y-o-y basis from $33.49 million in Q3 FY16. During Q3 FY17, the Company's diluted earnings per share (EPS) increased 25% to $1.55 on a y-o-y basis from $1.24 in the same period of last year. During Q3 FY17, the Company's adjusted diluted EPS increased 5.4% to $1.56 on a y-o-y basis from $1.48 in the corresponding period of last year. The adjusted diluted EPS was below analysts' expectations of $1.62.

Segment Details

Engineered Support Structures - During Q3 FY17, Valmont Industries' Engineered Support Structures segment's net revenue increased 9.0% to $221.51 million from $203.18 million in the same period of last year. The increase was mainly due to increased highway safety sales in Australia where road development activity increased. For the reported quarter, the segment's operating income decreased 20.1% to $16.23 million from $20.32 million in Q3 FY16. The decrease was due to raw material inflation.

Utility Support Structures - During Q3 FY17, Valmont Industries' Utility Support Structures segment's net revenue increased 19.3% to $179.76 million from $150.67 million in the comparable period of last year, due to increased pricing to reflect higher steel costs. For the reported quarter, the segment's operating income increased 36.5% to $22.11 million from $16.20 million in Q3 FY16.

Energy and Mining - During Q3 FY17, Valmont Industries' Energy and Mining segment's net revenue decreased 2.2% to $79.76 million from $81.55 million in the corresponding period of last year. For the reported quarter, the segment's operating income decreased 64% to $1.42 million from $3.94 million in Q3 FY16.

Coatings - During Q3 FY17, Valmont Industries' Coatings segment's net revenue increased 17.8% to $82.59 million from $70.08 million in the same period of last year. For the reported quarter, the segment's operating income increased 24.6% to $14.58 million from $11.70 million in Q3 FY16.

Irrigation - During Q3 FY17, Valmont Industries' Irrigation segment's net revenue increased 15.3% to $147.43 million from $127.81 million in the comparable period of last year. For the reported quarter, the segment's operating income increased 19.1% to $18.24 million from $15.31 million in Q3 FY16. The increase was mostly due to higher international irrigation sales.

Balance Sheet

As on September 30, 2017, Valmont Industries' cash and cash equivalents increased 41.2% to $493.49 million from $349.38 million as on September 24, 2016. During Q3 FY17, the Company's net accounts receivables increased 8.1% to $492.84 million from $455.69 million in the corresponding period of last year.

For the reported quarter, Valmont Industries' inventories increased 6.2% to $403.23 million from $379.63 million in Q3 FY16. For the reported quarter, the Company's accounts payable increased 26.4% to $216.10 million from $170.89 million in Q3 FY16.

For the reported quarter, the Company's long-term debt, excluding current installments decreased 0.1% to $754.20 million from $755.58 million in Q3 FY16.

Outlook

For FY17, Valmont Industries expects adjusted diluted EPS to be in the range of $6.90 - $7.04.

Stock Performance

At the closing bell, on Monday, October 23, 2017, Valmont Industries' stock marginally slipped 0.31%, ending the trading session at $159.00. A total volume of 107.59 thousand shares have exchanged hands. The Company's stock price surged 2.09% in the last three months, 3.52% in the past six months, and 24.17% in the previous twelve months. Moreover, the stock rallied 12.85% since the start of the year. The stock is trading at a PE ratio of 18.99 and has a dividend yield of 0.94%. The stock currently has a market cap of $3.63 billion.

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SOURCE: Pro-Trader Daily