Valmont Industries (NYSE:VMI) Issues Quarterly Earnings Results, Beats Expectations By $0.79 EPS

Key Points

• Valmont reported Q earnings of $5.51 EPS, beating the consensus $4.72 by $0.79, and delivered a return on equity of 23.82% with a net margin of 8.53%.
• The company raised its quarterly dividend from $0.68 to $0.77 (annualized $3.08), implying a 0.8% yield and an 18.31% payout ratio.
• Shares opened at $410.31 with a market cap of $8.02B and a P/E of 24.39; analysts are mixed but the stock carries an average "Moderate Buy" rating and an average price target of $487.

Valmont Industries (NYSE:VMI - Get Free Report) announced its quarterly earnings results on Tuesday. The industrial products company reported $5.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.79, Zacks reports. Valmont Industries had a return on equity of 23.82% and a net margin of 8.53%.

Valmont Industries Stock Performance

Shares of VMI stock opened at $410.31 on Tuesday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.58 and a current ratio of 2.35. Valmont Industries has a one year low of $267.02 and a one year high of $487.58. The company's 50-day simple moving average is $428.88 and its 200-day simple moving average is $421.48. The stock has a market capitalization of $8.02 billion, a price-to-earnings ratio of 24.39 and a beta of 1.24.

Valmont Industries Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Friday, March 27th were given a dividend of $0.77 per share. The ex-dividend date of this dividend was Friday, March 27th. This is a positive change from Valmont Industries's previous quarterly dividend of $0.68. This represents a $3.08 annualized dividend and a dividend yield of 0.8%. Valmont Industries's dividend payout ratio is 18.31%.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Wall Street Zen downgraded Valmont Industries from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. JPMorgan Chase & Co. raised their target price on Valmont Industries from $480.00 to $510.00 and gave the company an "overweight" rating in a research note on Wednesday, February 18th. Weiss Ratings restated a "hold (c+)" rating on shares of Valmont Industries in a research note on Friday, March 27th. DA Davidson raised their target price on Valmont Industries from $415.00 to $450.00 and gave the company a "neutral" rating in a research note on Wednesday, February 18th. Finally, Stifel Nicolaus raised their target price on Valmont Industries from $492.00 to $501.00 and gave the company a "buy" rating in a research note on Wednesday, February 18th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $487.00.

Hedge Funds Weigh In On Valmont Industries

Large investors have recently bought and sold shares of the business. Vanguard Personalized Indexing Management LLC increased its stake in shares of Valmont Industries by 0.9% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 2,303 shares of the industrial products company's stock valued at $927,000 after acquiring an additional 21 shares during the period. Public Employees Retirement System of Ohio increased its stake in shares of Valmont Industries by 0.4% during the third quarter. Public Employees Retirement System of Ohio now owns 7,565 shares of the industrial products company's stock valued at $2,933,000 after acquiring an additional 29 shares during the period. Aviva PLC increased its stake in shares of Valmont Industries by 3.6% during the fourth quarter. Aviva PLC now owns 1,452 shares of the industrial products company's stock valued at $584,000 after acquiring an additional 51 shares during the period. Parallel Advisors LLC increased its stake in shares of Valmont Industries by 37.1% during the fourth quarter. Parallel Advisors LLC now owns 218 shares of the industrial products company's stock valued at $88,000 after acquiring an additional 59 shares during the period. Finally, Summit Financial LLC increased its stake in shares of Valmont Industries by 1.8% during the fourth quarter. Summit Financial LLC now owns 3,454 shares of the industrial products company's stock valued at $1,392,000 after acquiring an additional 60 shares during the period. Institutional investors own 87.84% of the company's stock.

About Valmont Industries

Valmont Industries, Inc NYSE: VMI is a diversified industrial manufacturer specializing in infrastructure and agricultural products. Headquartered in Omaha, Nebraska, the company engages in the design, production and distribution of engineered products that support water management, power transmission, lighting and traffic infrastructure. Valmont's solutions range from center-pivot and lateral-move irrigation systems to utility poles, transmission towers, lighting structures and highway traffic signal support structures.

The company operates through several core business segments.

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