Valmont Industries (VMI) is jumping 10% after the company reported stronger-than-expected fourth-quarter results and noted that its operating cash flow had soared 67% last quarter versus the same period a year earlier. Moreover, the company provided slightly higher-than-expected 2025 earnings per share guidance, raised its dividend by 13% and unveiled a new share buyback program. The company develops products and provides services for infrastructure and agricultural markets. An aerial view of a vast farmland with irrigation canals running along the perimeter. A Look at VMI's Q4 Results and EPS Guidance Valmont reported Q4 EPS, excluding certain items, of $3.84, well above analysts' average estimate of $3.63. The company's Q4 sales rose 2% versus the same period a year earlier to $1.04 billion, slightly above analysts' mean outlook. Its operating cash flow soared 67% year-over-year to $193.4 million. On the guidance front, VMI expects 2025 EPS of $17.20 to $18.80. The midpoint of the range is $18, slightly above analysts' mean estimate of $17.92. A Dividend Hike and a New Share Repurchase Initiative VMI increased its quarterly dividend by 13% to 68 cents and announced a new $700 million share repurchase initiative. VMI's Comments “Looking ahead to 2025, demand for our Infrastructure products and solutions will drive continued sales growth. In Agriculture, international sales, particularly large-scale projects, will help offset expected market softness in North America," CEO Avner M. Applbaum said in a statement. While we acknowledge the potential of VMI, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VMI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO8 Best Wide Moat Stocks to Buy Now and30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.
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