Loading...
•
Jul 01, 2023
Valmont Q2 2023 Earnings Report
Expanded operating margins and record earnings per share were achieved.
Key Takeaways
Valmont Industries reported a decrease in net sales by 7.9% to $1.0 billion, but demonstrated strong performance through expanded operating margins and record earnings per share of $4.21. The company's operating income increased by 12.6% to $133.7 million, representing 12.8% of net sales. Despite softer demand in North America agriculture and telecommunications markets, Valmont maintained disciplined pricing strategies and solid execution by global teams.
Net Sales decreased by 7.9% to $1.0 billion.
Operating Income increased by 12.6% to $133.7 million, or 12.8% of net sales.
Diluted Earnings per Share (“EPS”) grew to $4.21.
Generated solid operating cash flows of $88.3 million.
Forward Guidance
Valmont updated its full-year net sales growth outlook to 0% to 2% but maintained its diluted earnings per share outlook.
Positive Outlook
- Expect full-year operating margin improvement compared to 2022.
- Long-term need for critical infrastructure investment globally supporting multi-year market growth.
- Strong backlog reflecting robust demand and customer trust.
- International agriculture market demand remains strong.
- Expect profitable growth across the portfolio with full-year 2023 adjusted operating margins approaching 12%.
Challenges Ahead
- Near-term softness in North America agriculture and telecommunications markets.
- Capex spending by wireless carriers more aligned with historical trends following record levels of investment.
- Modestly lower sales expected in North America agriculture in the second half of the year compared to the first half.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...