Construction materials company Vulcan Materials (NYSE:VMC) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Vulcan Materials missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $2.00 billion, down 8.3% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations. It reported 57.7 million tons shipped, down 9.8% year on year.
Is Vulcan Materials a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vulcan Materials’s revenue to be flat year on year at $1.82 billion, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vulcan Materials has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Vulcan Materials’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AZEK delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 7.9%, and Sherwin-Williams reported flat revenue, in line with consensus estimates. AZEK traded up 2.5% following the results while Sherwin-Williams’s stock price was unchanged.
Read our full analysis of AZEK’s results here and Sherwin-Williams’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the building materials stocks have shown solid performance, the group has generally underperformed, with share prices down 4.6% on average over the last month. Vulcan Materials is down 1.8% during the same time and is heading into earnings with an average analyst price target of $294.06 (compared to the current share price of $270.46).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
