On Jul 10, Zacks Investment Research upgraded steel pipe and
Valmont Industries, Inc.
) to a Zacks Rank #1 (Strong Buy).
Valmont reported impressive first-quarter 2013 results on Apr
18. The company has delivered positive earnings surprises
in the last 4 quarters with an average beat of 7.67%.
Valmont's long-term estimated earnings per share growth rate is
Omaha, Neb.-based Valmont reported first quarter earnings of
$2.89 per share, which outpaced the Zacks Consensus Estimate of
$2.50 and exceeded the year-ago earnings of $1.96 by roughly 47%.
Revenues increased roughly 14% year over year to $819.6 million
in the first quarter, beating the Zacks Consensus Estimate of
$809 million. Healthy gains across the Utility Support Structures
and Irrigation segments and acquisitions boosted sales in the
Following the release of the first quarter results, the Zacks
Consensus Estimate for 2013 for Valmont has gone up 3.55% to
$10.80 per share. The Zacks Consensus Estimate for 2014 has also
increased 1.43% to $11.35.
Valmont's Irrigation and Coatings segments are witnessing
strong momentum. In the Irrigation segment, improving North
American equipment demand amid the ongoing drought conditions and
higher farm income is boosting sales and profitability. The
Coatings segment is benefiting from moderating zinc prices and
declining energy costs. The company is also poised to savor
incremental opportunity in the utility market.
Valmont is actively pursuing capacity expansion through new
constructions and extension of existing facilities to meet the
increasing demand from utility customers in North America. Also,
acquisitions have strengthened Valmont's position in the access
KOBE STEEL-ADR (KBSTY): Get Free Report
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
VALMONT INDS (VMI): Free Stock Analysis
To read this article on Zacks.com click here.
Valmont's strong presence in emerging markets should enable it to
deliver incremental earnings in 2013. We are also encouraged by
its commitment to boost shareholder returns through higher
dividend payouts. This is evident as Valmont's board declared an
11% hike in its quarterly dividend to 25 cents per share from the
prior payout of 22.5 cents on an annual basis on Apr 30.
Other Stocks to Consider
Other companies in the steel industry with favorable Zacks Rank
Kobe Steel Ltd.
Shiloh Industries Inc
Nippon Steel & Sumitomo Metal Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).