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Stock Market & Financial Investment News

News Breaks
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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February 24, 2015
17:33 EDTVMIValmont authorizes new share repurchase program
Valmont Industries announced that its board has authorized the additional repurchase of $250M of its common stock outstanding. As of February 24, the company had approximately $55M remaining under the $500M share repurchase authorization announced in May 2014. The purchases will be funded from available cash flows and cash balances and will be made subject to market and economic conditions. Shares repurchased will be available for general corporate purposes, including acquisitions.
February 17, 2015
17:33 EDTVMIValmont anticipates difficult market environment to continue along FY15
"Looking forward to 2015, we anticipate a difficult market environment to continue," company said. "Results of the Irrigation Segment are expected to be negatively affected by lower commodity prices and large inventories of major crops such as corn and soybeans. The markets for our Engineered Infrastructure Products Segment are not expected to see meaningful improvement in public spending on infrastructure both in the U.S. and international markets. In the Utility Segment, the size of the market in North America should continue near current levels, but we will not experience the growth we have seen over the last number of years, and the pricing environment remains difficult. Our Coatings Segment should do well in our home market but face difficult markets internationally, particularly in Australia. We have a number of infrastructure businesses in Australia exposed to a weak economy there. Adding to our challenges, the significantly stronger U.S. Dollar will dampen export profitability from the U.S. and reduce foreign revenues and earnings when translated into U.S. dollars. In this environment, our focus will be on the quality of our earnings through operational excellence."
17:31 EDTVMIValmont reports Q4 adj. EPS $1.62, consensus $1.65
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15:32 EDTVMINotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include Devon Energy (DVN), consensus $1.05... Vornado Realty (VNO), consensus $1.23... Analog Devices (ADI), consensus 61c... FirstEnergy (FE), consensus 75c... CF Industries (CF), consensus $5.08... Agilent Technologies (A), consensus 41c... Cimarex Energy (XEC), consensus 82c... Flowserve (FLS), consensus $1.13... Fossil (FOSL), consensus $3.07... Rackspace (RAX), consensus 19c... Norwegian Cruise Line (NCLH), consensus 37c... Jack in the Box (JACK), consensus 87c... Cloud Peak Energy (CLD), consensus 7c... La-Z-Boy (LZB), consensus 38c... KAR Auction Services (KAR), consensus 29c... Owens & Minor (OMI), consensus 50c... Valmont Industries (VMI), consensus $1.65... Realty Income (O), consensus 66c.

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