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June 25, 2014
11:23 EDTVMIValmont sinks after cutting earnings guidance
Shares of Valmont Industries (VMI), a producer of fabricated metal products, are falling after the company lowered its fiscal 2014 earnings per share outlook. Its second quarter EPS outlook also fell shy of analysts' consensus estimates. WHAT'S NEW: Last night, Valmont lowered its FY14 EPS outlook to $9.35-$9.65 from $10.00-$10.50, compared to consensus of $10.37. The company also forecast Q2 EPS of $2.35-$2.40, which was significantly below the consensus of $2.79. The company noted the following in lowering its guidance: "In the Utility Support Structures Segment, the mix and timing of projects currently provide less favorable profits than what we have seen in recent years and less than our prior expectations for this year. We now expect operating income as a percentage of sales for this segment to be in the range of 12% to 14% both for the second quarter and for the year. In the Coatings Segment, the weaker Australian economy has negatively affected the profitability of our galvanizing businesses in that country and the less favorable exchange rate has dampened the results from all our Australian operations. As expected, our Irrigation Segment will have an unfavorable comparison for the second quarter compared to an exceptionally strong second quarter in 2013. We expect improved profits from our Engineered Infrastructure Products Segment." ANALYST REACTION: This morning, analyst commentary was mixed. Research firm Wedbush downgraded Valmont to Neutral from Outperform, citing the company's lowered FY14 guidance. Conversely, DA Davidson said Valmont should be bought on weakness. The firm thinks the company's irrigation business can stabilize in the second half of the year, while the company could also be boosted by a share repurchase program, acquisitions, or new growth programs. The firm believes that the company has several positive attributes, including attractive exposure to infrastructure end markets and long-term growth potential in efficient irrigation products. It kept a Buy rating on the shares. PRICE ACTION: In late morning trading, Valmont fell $11.66, or about 7.3%, to $148.63 on nearly twice its average daily trading volume. Including today's pull back, the stock is up about 6% over the past 12 months.
News For VMI From The Last 14 Days
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May 1, 2015
07:17 EDTVMIGabelli to hold a trip
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April 22, 2015
17:37 EDTVMIValmont announces $60M restructuring plan, sees $30M in pre-tax charges
"Given that market conditions in a number of our businesses are not expected to improve over the near-term, our board has authorized a broad restructuring plan of up to $60M. The initial restructuring actions will involve the consolidation of operations and other cost reduction activities, resulting in pre-tax charges of approximately $30M. The charges will include $19M of cash expenses and $11M of non-cash charges. These actions will take place over the remainder of 2015. Most of the restructuring activities will take place in our Infrastructure businesses where an improvement in the Australian industrial and mining economies is not expected near term and public spending for infrastructure in Europe and North America continues to be constrained. The cash expenses are expected to be recovered through lower operating costs within 12-18 months. Of the above costs, approximately $800,000 of pre-tax cash expenses were incurred during the first quarter related to the restructuring. We are also evaluating other actions that could result in as much as $30M of additional charges, most of which would be non-cash impairment charges," said the company.
17:35 EDTVMIValmont reports Q1 EPS $1.28, consensus $1.49
Reports Q1 revenue $670.40M, consensus $715.36M. Reports foreign currency translation adversely impacted sales and operating income by $31Mand $2.3M, respectively.
15:30 EDTVMINotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include eBay (EBAY), consensus 70c... Facebook (FB), consensus 40c... Texas Instruments (TXN), consensus 62c... Las Vegas Sands (LVS), consensus 72c... Qualcomm (QCOM), consensus $1.33... AT&T (T), consensus 62c... F5 Networks (FFIV), consensus $1.50... Plexus (PLXS), consensus 69c... Skechers (SKX), consensus $1.01... Select Comfort (SCSS), consensus 41c... Tractor Supply (TSCO), consensus 41c... Covanta (CVA), consensus (8c)... Crown Castle (CCI), consensus $1.09... Torchmark (TMK), consensus $1.05... Ameriprise (AMP), consensus $2.33... Polycom (PLCM), consensus 21c... Citrix (CTXS), consensus 65c... Core Laboratories (CLB), consensus 85c... Graco (GGG), consensus 78c... Cheesecake Factory (CAKE), consensus 48c... Equifax (EFX), consensus $1.02... SLM (SLM), consensus 7c... Xilinx (XLNX), consensus 50c... O'Reilly Automotive (ORLY), consensus $1.94... Susquehanna (SUSQ), consensus 18c... Raymond James (RJF), consensus 83c... SL Green Realty (SLG), consensus $1.49... CoreLogic (CLGX), consensus 31c... Oceaneering (OII), consensus 62c... Valmont (VMI), consensus $1.49... Brandywine Realty (BDN), consensus 32c... Weatherford (WFT), consensus 1c.

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