Valmont Industries (NYSE:VMI) Shares Gap Up Following Strong Earnings

Key Points

• EPS beat: Valmont reported Q EPS of $5.51 vs. $4.72 expected and revenue rose 6.2% YoY, triggering a gap up from $409.88 to a $440.20 open and an intraday rise of about 13.8%.
• The company raised its quarterly dividend to $0.77 (annualized $3.08) from $0.68, implying a 0.7% yield and an 18.31% payout ratio.
• Analyst sentiment is mixed but constructive, with three Buy and two Hold ratings and a consensus price target of $487, while institutional investors own about 87.8% of the stock.

Valmont Industries, Inc. (NYSE:VMI - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $409.88, but opened at $440.20. Valmont Industries shares last traded at $466.6140, with a volume of 38,911 shares.

The industrial products company reported $5.51 EPS for the quarter, topping analysts' consensus estimates of $4.72 by $0.79. Valmont Industries had a return on equity of 23.82% and a net margin of 8.53%.Valmont Industries's revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.32 EPS.

Valmont Industries Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Friday, March 27th were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, March 27th. This is a positive change from Valmont Industries's previous quarterly dividend of $0.68. Valmont Industries's payout ratio is presently 18.31%.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Valmont Industries

Several hedge funds have recently bought and sold shares of VMI. Invesco Ltd. raised its stake in shares of Valmont Industries by 8.3% during the 3rd quarter. Invesco Ltd. now owns 422,997 shares of the industrial products company's stock worth $164,009,000 after buying an additional 32,382 shares during the last quarter. Earnest Partners LLC raised its position in Valmont Industries by 1.7% during the third quarter. Earnest Partners LLC now owns 399,388 shares of the industrial products company's stock worth $154,855,000 after acquiring an additional 6,799 shares during the last quarter. Geode Capital Management LLC raised its position in Valmont Industries by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 369,059 shares of the industrial products company's stock worth $148,509,000 after acquiring an additional 12,480 shares during the last quarter. Sei Investments Co. lifted its holdings in shares of Valmont Industries by 3.1% in the third quarter. Sei Investments Co. now owns 290,948 shares of the industrial products company's stock valued at $112,809,000 after purchasing an additional 8,715 shares in the last quarter. Finally, Allianz Asset Management GmbH grew its position in shares of Valmont Industries by 1.2% in the third quarter. Allianz Asset Management GmbH now owns 283,740 shares of the industrial products company's stock valued at $110,015,000 after purchasing an additional 3,379 shares during the last quarter. 87.84% of the stock is owned by hedge funds and other institutional investors.

Valmont Industries Stock Up 13.8%

The company has a debt-to-equity ratio of 0.49, a current ratio of 2.35 and a quick ratio of 1.58. The firm's 50-day moving average price is $428.88 and its 200 day moving average price is $421.48. The firm has a market capitalization of $9.12 billion, a price-to-earnings ratio of 27.72 and a beta of 1.24.

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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