It's been a pretty great week for Valmont Industries, Inc. (NYSE:VMI) shareholders, with its shares surging 12% to US$363 in the week since its latest full-year results. It was a credible result overall, with revenues of US$4.1b and statutory earnings per share of US$17.19 both in line with analyst estimates, showing that Valmont Industries is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Valmont Industries
Following last week's earnings report, Valmont Industries' six analysts are forecasting 2025 revenues to be US$4.11b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 4.7% to US$18.19. Before this earnings report, the analysts had been forecasting revenues of US$4.14b and earnings per share (EPS) of US$17.92 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 10% to US$407despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Valmont Industries' earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Valmont Industries analyst has a price target of US$441 per share, while the most pessimistic values it at US$380. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Valmont Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Valmont Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Valmont Industries is also expected to grow slower than other industry participants.
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Valmont Industries going out to 2027, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Valmont Industries that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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