U.S. markets closed
  • S&P Futures

    4,149.25
    +3.00 (+0.07%)
     
  • Dow Futures

    34,216.00
    +33.00 (+0.10%)
     
  • Nasdaq Futures

    13,349.00
    +3.00 (+0.02%)
     
  • Russell 2000 Futures

    2,207.00
    +3.70 (+0.17%)
     
  • Crude Oil

    65.54
    +0.26 (+0.40%)
     
  • Gold

    1,837.30
    +1.20 (+0.07%)
     
  • Silver

    27.72
    +0.05 (+0.19%)
     
  • EUR/USD

    1.2149
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.6240
    +0.0220 (+1.37%)
     
  • Vix

    21.84
    +2.18 (+11.09%)
     
  • GBP/USD

    1.4139
    -0.0005 (-0.04%)
     
  • USD/JPY

    108.7400
    +0.1200 (+0.11%)
     
  • BTC-USD

    57,029.85
    +1,511.92 (+2.72%)
     
  • CMC Crypto 200

    1,533.57
    +1,290.89 (+531.93%)
     
  • FTSE 100

    6,947.99
    -175.69 (-2.47%)
     
  • Nikkei 225

    28,608.59
    0.00 (0.00%)
     

What to Expect From Vulcan Materials' (VMC) Q4 Earnings

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Vulcan Materials Company VMC is scheduled to release fourth-quarter 2020 results on Feb 16, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and revenues missed the Zacks Consensus Estimate by 4.3% and 4.8%, respectively. On a year-over-year basis, earnings and revenues decreased 7.1% and 7.2%, respectively.

Vulcan Materials’ earnings topped the consensus mark in two of the last four quarters and missed the same on the other two occasions, with the average surprise being 5.7%.

Vulcan Materials Company Price and EPS Surprise

Vulcan Materials Company Price and EPS Surprise
Vulcan Materials Company Price and EPS Surprise

Vulcan Materials Company price-eps-surprise | Vulcan Materials Company Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has been unchanged over the past 30 days at 99 cents. This indicates a decrease of 8.3% from the year-ago quarter. The consensus estimate for revenues is pegged at $1.14 billion, suggesting a 3.9% year-over-year decline.

Factors to Note

Vulcan Materials is expected to have generated lower earnings and revenues on a year-over-year basis in the fourth quarter, given weakness in non-residential construction activities. Also, headwinds from California wildfires are expected to reflect on fourth-quarter results.

However, strong residential construction activity and milder weather conditions that led to the extension of the construction season are likely to have supported the company’s top line. Its business and earnings are sensitive to changes in construction spending, particularly housing and public construction in the Southeast, Texas, and California. Also, Vulcan Materials has a sizable presence in the South. Higher spending (compared with the third quarter) from a number of states that the company serves is likely to have aided the company’s revenues. Notably, publicly-funded construction accounts for significant part (approximately 45-55%) of Vulcan Materials’ total aggregate shipments. The Aggregates business (including crushed stone, sand and gravel, along with other aggregates) has been a major contributor to revenue growth.

Also, efforts to enhance operational excellence, acquisition synergies and cost-control measures are expected to have aided the bottom line to some extent. While volumes are likely to have been under pressure, the aggregates unit margins are expected to have improved, given higher prices and lower diesel fuel costs.

The Zacks Consensus Estimate for net sales from the Aggregates segment (accounting for 81% of total revenues) is pegged at $936 million, indicating a decrease from $960 million a year ago.

The consensus mark for net sales from the Concrete segment (accounting for 8% of total revenues) is $91 million, suggesting a decline from $95 million a year ago.

The Zacks Consensus Estimate for the same from the Asphalt Mix segment (17% of total revenues) is pegged at $192 million, indicating fall from $206 million a year ago.

The consensus mark for Calcium segment’s net sales is $2.08 million, suggesting a decrease from $2.12 million a year ago.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Vulcan Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Vulcan Materials currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Owens Corning Inc. OC has an Earnings ESP of +3.24% and holds a Zacks Rank #2.

Primoris Services Corporation PRIM has an Earnings ESP of +4.55% and carries a Zacks Rank #1.

Trex Company, Inc. TREX has an Earnings ESP of +2.07% and carries a Zacks Rank #3.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Vulcan Materials Company (VMC) : Free Stock Analysis Report

Owens Corning Inc (OC) : Free Stock Analysis Report

Primoris Services Corporation (PRIM) : Free Stock Analysis Report

Trex Company, Inc. (TREX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research