Valmont Industries (NYSE:VMI) Shares Gap Up After Better-Than-Expected Earnings

Valmont Industries, Inc. (NYSE:VMI)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $207.70, but opened at $225.41. Valmont Industries shares last traded at $236.18, with a volume of 81,053 shares changing hands.

The industrial products company reported $4.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.24 by $1.08. Valmont Industries had a return on equity of 20.69% and a net margin of 3.44%. The firm had revenue of $977.83 million during the quarter, compared to the consensus estimate of $986.98 million. During the same period in the prior year, the business earned $3.54 EPS. The business’s revenue for the quarter was down 8.0% on a year-over-year basis.

Valmont Industries Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Friday, March 29th were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 0.99%. The ex-dividend date was Wednesday, March 27th. Valmont Industries’s dividend payout ratio is currently 35.61%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on VMI. Stifel Nicolaus restated a “buy” rating and issued a $249.00 target price on shares of Valmont Industries in a research note on Monday, March 25th. DA Davidson lowered their price objective on Valmont Industries from $290.00 to $275.00 and set a “buy” rating on the stock in a report on Tuesday, February 27th. Finally, StockNews.com upgraded Valmont Industries from a “hold” rating to a “buy” rating in a report on Saturday, March 23rd. One research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $262.00.

Hedge Funds Weigh In On Valmont Industries

Large investors have recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of Valmont Industries during the 4th quarter worth approximately $49,526,000. Impax Asset Management Group plc lifted its position in Valmont Industries by 22.6% in the third quarter. Impax Asset Management Group plc now owns 797,247 shares of the industrial products company’s stock worth $191,507,000 after purchasing an additional 146,798 shares during the period. Victory Capital Management Inc. increased its holdings in Valmont Industries by 139.6% in the 3rd quarter. Victory Capital Management Inc. now owns 204,584 shares of the industrial products company’s stock valued at $49,143,000 after buying an additional 119,201 shares during the period. Vaughan Nelson Investment Management L.P. acquired a new position in shares of Valmont Industries in the 4th quarter valued at $22,332,000. Finally, Wellington Management Group LLP bought a new position in shares of Valmont Industries during the 4th quarter worth about $21,669,000. 87.84% of the stock is currently owned by institutional investors and hedge funds.

Valmont Industries Stock Performance

The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.56 and a current ratio of 2.47. The firm has a market capitalization of $4.92 billion, a price-to-earnings ratio of 34.42 and a beta of 1.05. The firm’s 50-day moving average price is $215.91 and its two-hundred day moving average price is $220.13.

Valmont Industries Company Profile

Valmont Industries, Inc operates as manufacturer of products and services for infrastructure and agriculture markets in the United States, Australia, Brazil, and internationally. It operates through two segments, Infrastructure and Agriculture. The company manufactures and distributes steel, pre-stressed concrete, composite structures for electrical transmission, substation, and distribution applications; and designs, engineers, and manufactures metal, steel, wood, aluminum, and composite poles and structures for lighting and transportation applications.