Vulcan Materials Company: Earnings Report on the Horizon
Company Prepares to Unveil Q4 Profits Amid Mixed Analyst Expectations
With a market cap of $35.7 billion, Birmingham, Alabama-based Vulcan Materials Company (VMC) is a leading producer and supplier of construction aggregates in the United States. The company operates through four segments: Aggregates, Asphalt, Concrete, and Calcium, providing essential materials for public infrastructure, residential, and commercial construction projects, as well as calcium products used in various industrial applications.
VMC is set to announce its fiscal Q4 earnings results before the market opens on Tuesday, February 18. Analysts expect the construction materials company to report a profit of $1.76 per share, which represents a significant increase of 20.6% from $1.46 per share in the same quarter last year. In the past four quarterly reports, the company beat Wall Street’s bottom-line estimates twice but fell short on two occasions. In Q3, VMC missed the consensus EPS estimate by 5.1%.
Looking ahead to fiscal 2024, analysts project VMC will report an EPS of $7.16 per share, a modest increase of 2.3% from $7 per share in fiscal 2023. Additionally, EPS is forecast to grow by 23% year-over-year to reach $8.81 in fiscal 2025.
Vulcan Materials has risen 22.1% over the past 52 weeks, although it has underperformed compared to the broader S&P 500 Index’s ($SPX) 26.5% gain. Conversely, the stock has outperformed the Materials Select Sector SPDR Fund’s (XLB) 7.9% return during the same period.
Despite reporting a weaker-than-expected Q3 with an adjusted EPS of $2.22 and total revenue of $2 billion, VMC shares surged 6.4% on October 30. The company recorded a 10% increase in aggregate cash gross profit per ton to $10.89, marking its eighth consecutive quarter of double-digit growth. An improvement of 140 basis points in adjusted EBITDA margin to 29% also supported its stock performance. Furthermore, Vulcan’s acquisition of Wake Stone Corporation has expanded its reach in the high-growth Carolinas region. The company’s guidance of high-single-digit price increases and double-digit growth in cash gross profit per ton for 2025 further intensified investor enthusiasm.
Analysts generally hold a cautiously optimistic view on Vulcan Materials stock, currently rating it as a “Moderate Buy.” Among the 19 analysts covering the stock, 12 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and six endorse a “Hold.” This outlook shows slight improvement compared to three months ago, when there were only 11 “Strong Buy” ratings.
As of this writing, VMC is trading below the average analyst price target of $304.44.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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