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Vulcan Materials (VMC) to Post Q1 Earnings: What's in Store?

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Vulcan Materials Company VMC is scheduled to release first-quarter 2021 results on May 4, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and revenues beat the Zacks Consensus Estimate by 8.1% and 3.1%, respectively. On a year-over-year basis, earnings and revenues both decreased 0.9%.

Vulcan Materials’ earnings topped the consensus mark in three of the last four quarters and missed the same on the other occasion, with the average surprise being 8.6%.

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 41 cents. This indicates a decrease of 12.8% from the year-ago quarter. The consensus estimate for revenues is pegged at $1.01 billion, suggesting a 3.5% year-over-year decline.

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

Factors to Note

Vulcan Materials is expected to have generated lower earnings and revenues on a year-over-year basis in the first quarter, given weather-induced lower shipments and higher diesel fuel costs.

Similar to the other aggregates and cement producers, Vulcan Materials is expected to have witnessed weather-related woes in the first quarter, primarily in Texas. Hence, inclement weather conditions in February may have been a headwind. Also, inflation from hydrocarbon, insurance and labor might have added to the negatives.

Nonetheless, strong residential construction activity is likely to have supported the company’s top line. Higher spending from a number of states that it serves is likely to have aided the company’s revenues. 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.

Other Projections

The Zacks Consensus Estimate for net sales from the Aggregates segment (accounting for 81% of total revenues) is pegged at $823 million, indicating a decrease from $868 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 $134 million, indicating fall from $140 million a year ago.

The consensus mark for Calcium segment’s net sales is $2 million, suggesting a decrease from $2.03 million a year ago.

What Our Quantitative Model Predicts

Our proven model predicts 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.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +3.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

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

Other Stocks Worth a Look

Here are some other 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.

Martin Marietta Materials, Inc. MLM has an Earnings ESP of +8.47% and a Zacks Rank #3.

Summit Materials, Inc. SUM has an Earnings ESP of +9.43% and a Zacks Rank #3.

Eagle Materials Inc. EXP has an Earnings ESP of +8.50% and a Zacks Rank #3.

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Vulcan Materials Company (VMC) : Free Stock Analysis Report

Eagle Materials Inc (EXP) : Free Stock Analysis Report

Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report

Summit Materials, Inc. (SUM) : Free Stock Analysis Report

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