Valmont Industries, Inc. (NYSE:VMI) Reports 4Q Revenues & Earnings Significantly Ahead of Expectation

Valmont Industries, Inc. (NYSE:VMI) reported fourth fiscal quarter earnings result above expectation on Thursday with majority of the upside coming from significantly better than expected results in the company’s Irrigation segment. The Company reported sales for the fourth fiscal quarter of $598.7 million, an increase of 50% year over year from $398.6 million for the same period of 2009 and above the consensus estimate of $529.8 million. Excluding Delta, which was consolidated subsequent to the fourth quarter last year, sales improved 14% year over year, driven primarily by strong organic gains in Irrigation.  Irrigation sales surged 62% from a year ago to $134 million. Fourth fiscal quarter net earnings of $34.9 million or $1.32 per share have been recorded versus net earnings of $30.0 million, or $1.14 per share in the same quarter last year. Included in the quarter was $0.03 per share in transaction costs related to the Delta acquisition.  Excluding these costs, earnings would have been $1.35 per share versus the analysts' estimate of $1.12 per share. The upside was driven by better top-line sales which grew 50% year over year as well higher margins. Operating margins declined 150 basis points on a year over year basis, however, prior year results included unusually high utility tower operating margins. For fiscal 2010, sales were $1.976 billion versus $1.787 billion in 2009.The Company's fiscal year net earnings were $94.4 million, or$3.57 per diluted share including the expenses and financing associated with the purchase of Delta plc on May 12, 2010, compared with 2009 fiscal year earnings of $150.6 million, or $5.73 per diluted share. Shares of a global producer of fabricated metal products went up by 13.02% or $12.70 to $110.26 after delivering fourth fiscal quarter results above expectations with sales upside aided by stronger than expected sales in Irrigation (+62%) and incremental contributions from the Delta acquisition. The Company anticipates that 2011 earnings will increase 35%-45% relative to 2010 GAAP earnings of $3.57 per share, implying an earnings guidance of $4.82-$5.18 for 2011.  Excluding significant transaction costs related to the acquisition of Delta, 2010 earnings were $4.19 per share.  On a non-GAAP basis, excluding the non-recurring expenses incurred in 2010, guidance implies an earnings growth of 15%-23%. The stock climbed to new annual high of $116.02, its annual low being $65.94 after opening at $109.81 and trading with volume of 1.32 million shares, above the daily average volume of 0.137 million shares. The market capitalization of the stock stands at $2.91 billion with P/E of 32.53 and beta of 1.55. The Company operates through four segments: Engineered Support Structures (ESS), Utility Support Structures (USS), Coatings and Irrigation. Engineered Support Structures segment consists of the manufacturing of engineered metal structures and components for the global lighting and traffic and wireless communication industries. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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