Vulcan Materials Q3 Profit Falls, Still Beats View (VMC)

Created by Dividend.com

Stone, gravel, and asphalt maker Vulcan Materials Company (VMC) said Tuesday that its third quarter profit fell 8% from last year, hurt by sharply lower revenue.

The Birmingham, Alabama-based company reported third quarter net income of $54.23 million, or 43 cents per share, compared with $59.05 million, or 53 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 38 cents per share.

Revenue plunged 23% from last year, to $778.19 million.

On average, Wall Street analysts expected a slightly lower profit of 37 cents per share, but on higher revenue of $809.17 billion.

Vulcan shares fell 37 cents, or -0.8%, in premarket trading Tuesday.

The Bottom Line
We have avoided shares of VMC since our early June coverage began last year, when the stock was trading at $70.95. The company will now have a 2.12% dividend yield, based on last night’s closing stock price of $43.57. The stock has technical support in the $40-$41 price area. If the shares can firm up, we see overhead resistance around the $52-$53 price levels. We would remain on the sidelines for now.

Vulcan Materials Company (VMC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

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