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Shares of Valmont Industries (NYSE:VMI) hit their highest level in more than a month, gaining 7.6% to $255.57 in Thursday trading, after the infrastructure and agricultural solutions provider reported Q2 2022 results that beat estimates and raised its FY guidance.
VMI after hours on Wednesday posted Q2 non-GAAP EPS of $3.70, which beat estimates by $0.36. VMI’s revenue of $1.14B, which the company said was a quarterly record, beat expectations by $140M.
Valmont (VMI) attributed the record revenue and its record quarter-end backlog of $2B to strong market demand across its portfolio.
The company also raised its FY 2022 net sales guidance, saying it expected net sales growth of 20% to 21% vs. 11% to 17% previously. The consensus revenue estimate for the full year is $4.01B.
VMI’s non-GAAP EPS for FY 2022 is now expected to be $13.60 to $14 vs. $13 to $13.50 earlier. The consensus EPS estimate is $13.09.
“Operating margin improvement was driven by our ability to successfully execute on pricing strategies, higher volumes, and better fixed-cost leverage…we are seeing strong demand for our products and solutions across global infrastructure and agricultural markets…,” said VMI CEO Stephen Kaniewski in the earnings report.
Sales in Valmont’s (VMI) infrastructure segment grew 23.9% Y/Y to $765M, comprising 67% of the company’s total net sales. The growth in the segment was driven by favorable pricing globally, especially in the transmission, lighting, transportation and telecommunication product lines, and higher volumes.
VMI’s agriculture segment posted sales of $377.8M, comprising 33% of the company’s total net sales. The segment was helped by higher average selling prices of irrigation equipment globally and higher volumes, notably in North America and Brazil.
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Image and article originally from seekingalpha.com. Read the original article here.