What Happened?
Shares of infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE: VMI) jumped 5.7% in the afternoon session after the company reported second-quarter financial results that surpassed analyst expectations and raised its full-year earnings guidance.
The provider of infrastructure and agricultural products posted adjusted earnings of $4.88 per share for the second quarter, beating the consensus estimate of $4.71. Revenue for the quarter came in at $1.05 billion, a 1.0% year-over-year increase that also exceeded analyst forecasts of $1.03 billion. This growth was driven by solid performance in its Utility, Telecommunications, and International Agriculture segments.
Looking ahead, Valmont increased its full-year 2025 adjusted earnings per share (EPS) guidance to a new range of $17.50 to $19.50, up from the prior forecast. The midpoint of this new range stood above the analyst consensus, signaling management's confidence despite incurring significant one-time charges related to a strategic realignment during the quarter. The company also returned $113.6 million to shareholders through dividends and share buybacks.
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What Is The Market Telling Us
Valmont’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 13.8% on the news that the company reported strong fourth-quarter 2024 results, with revenue, EBITDA, and EPS all beating analysts' expectations.
Sales grew 2.1% y/y, driven by strength in the Infrastructure segment, where pricing improvements and higher volumes in utility and telecommunications offsetting declines in solar sales. Profit margins expanded significantly, and this was a key factor in the EPS improvement and outperformance.
However, full-year revenue guidance slightly missed expectations due to anticipated weakness in the Agriculture segment, while EPS guidance was in line. Overall, the results weren't perfect but were solid.
Valmont is up 15.5% since the beginning of the year, and at $352.41 per share, it is trading close to its 52-week high of $376.98 from February 2025. Investors who bought $1,000 worth of Valmont’s shares 5 years ago would now be looking at an investment worth $2,965.
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