The 10-second takeaway
For the quarter ended March 31 (Q1), Valmont Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.
Margins grew across the board.
Valmont Industries reported revenue of $717.4 million. The nine analysts polled by S&P Capital IQ predicted a top line of $669.6 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $567.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.96. The nine earnings estimates compiled by S&P Capital IQ predicted $1.53 per share. GAAP EPS of $1.96 for Q1 were 102% higher than the prior-year quarter's $0.97 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26%, 200 basis points better than the prior-year quarter. Operating margin was 11.5%, 350 basis points better than the prior-year quarter. Net margin was 7.3%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $748.4 million. On the bottom line, the average EPS estimate is $1.99.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $7.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members rating the stock outperform and 11 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Valmont Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valmont Industries is outperform, with an average price target of $128.29.
- Add Valmont Industries to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.