LONDON, UK / ACCESSWIRE / July 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Valmont Industries, Inc. (NYSE: VMI) ("VMI"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=VMI, following the Company's disclosure of its financial results on July 19, 2017, for the second quarter fiscal 2017. The infrastructure equipment maker's sales jumped 11.3%, while its cash and cash equivalents increased 30.2% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For three months ended July 01, 2017, VMI's net sales increased 11.3% to $712.74 million from $640.25 million in Q2 FY16. During Q2 FY17, the Company's net sales surpassed analysts' expectations of $666.2 million.
During Q2 FY17, VMI's gross profit increased 4.7% to $183.28 from $175.12 in the same quarter last year. For the reported quarter, VMI's selling, general, and administrative expenses (SG&A) decreased 141 basis points to 14.73% of sales from 16.14% of sales in Q2 FY16.
During Q2 FY17, VIM's operating income increased 9% on a y-o-y basis to $78.29 million. For the reported quarter, the Company's net earnings increased 8.6% to $45.66 million from $42.03 million in Q2 FY16. During Q2 FY17, VIM's diluted EPS was $2.01 compared to $1.85 in the same quarter last year. The diluted EPS surpassed analysts' expectations of $1.93.
During Q2 FY17, VMI's Board of Directors appointed Stephen G. Kaniewski as President and Chief Executive Officer effective December 31, 2017.
Segment Details
Engineered Support Structures - During Q2 FY17, VMI's Engineered Support Structures segment's net sales increased 6.7% to $217.58 million from $203.92 million in the same quarter last year. The increase was attributable to increased inter-segment sales to the Utility Support Structures segment and higher wireless communication product sales in North America. For the reported quarter, the segment's operating income decreased 2.8% to $20.24 million from $20.82 million in Q2 FY16.
Utility Support Structures - During Q2 FY17, VMI's Utility Support Structures segment's net sales increased 22.1% to $184.62 million from $151.25 million in the same quarter last year. The increase was mainly due to volume increases and certain pricing tied to increased steel costs. For the reported quarter, the segment's operating income increased 15.4% to $20.19 million from $17.58 million in Q2 FY16.
Energy and Mining - During Q2 FY17, VMI's Energy and Mining segment's net sales decreased 4.3% to $77.21 million from $80.69 million in the same quarter last year. The decrease was due to a decline in sales of access systems. For the reported quarter, the segment's operating income increased to 21.6% $3.94 million from $3.24 million in Q2 FY16.
Coatings - During Q2 FY17, VMI's Coatings segment's net sales increased 6.2% to $79.78 million from $75.30 million in the same quarter last year. The increase was reflected in increased activity in the Asia/Pacific region. For the reported quarter, the segment's operating income decreased 13.6% to $12.11 million from $14.02 million in Q2 FY16.
Irrigation - During Q2 FY17, VMI's Irrigation segment's net sales decreased 23.7% to $188.29 million from $152.25 million in the same quarter last year. The increase was mainly due to increased sales in the North American market and increased international sales. For the reported quarter, the segment's operating income increased 11.8% to $34.67 million from $31.01 million in Q2 FY16.
Balance Sheet
As on June 30, 2017, VMI's cash and cash equivalents increased 30.2% on a y-o-y basis to $448.22 million. For the reported quarter, VMI's inventories increased 2.8% to $382.65 million from $372.11 million.
Outlook
For FY17, VIM expects sales growth to be in the mid to upper single digits and EPS growth to be 10% on a y-o-y basis. For fiscal 2017, the Company estimates tax rate to be at 31% and capital expenditure to be in the range of $60 million-$65 million.
Stock Performance
On Monday, July 24, 2017, the stock closed the trading session at $154.50, falling 2.18% from its previous closing price of $157.95. A total volume of 135.80 thousand shares has exchanged hands, which was higher than the 3-month average volume of 118.08 thousand shares. Valmont Industries' stock price rallied 2.01% in the last three months, 9.96% in the past six months, and 17.67% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 9.65%. The stock is trading at a PE ratio of 19.53 and has a dividend yield of 0.97%. At Monday's closing price, the stock's net capitalization stands at $3.48 billion.
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