Valmont beat sales and earnings expectations for fiscal Q1.
The company also narrowed its earnings outlook for the year, raising the lower end of its target.
Valmont Industries (NYSE: VMI) stock bounded higher in this week's trading. The industrials company's share price jumped 20.9% higher across the stretch. Meanwhile, the S&P 500 index's level climbed 0.5% over the same period, and the Nasdaq Composite index's level rose 1.5%.
On April 21, Valmont published results for the first quarter of its current fiscal year -- which ended March 28. The company reported sales and earnings that beat the average Wall Street analyst estimates, and the company also increased elements of its forward guidance.
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Valmont reported earnings per share of $5.51 in fiscal Q1, crushing the average analyst estimate's target for per-share earnings of $4.67 in the period. Meanwhile, revenue for the period increased roughly 6.3% year over year to come in at $1.03 billion -- beating the average Wall Street analyst target by roughly $34.2 million. The company benefited from sales volume growth and margin expansion for its North America Utility segment in the period, and it also issued encouraging forward guidance.
With its recent fiscal Q1 report, Valmont reiterated guidance for sales to come in between $4.2 billion and $4.4 billion. On the other hand, the company raised its forecast for infrastructure sales to $3.3 billion to $3.45 billion -- up from its previous target for sales between $3.25 billion and $3.4 billion. On the other hand, it lowered its target for agriculture sales to between $0.9 billion and $0.95 billion -- down from its previous forecast for sales between $0.95 billion and $1 billion.
While the company's segment sales guidance adjustments were effectively a wash, the company raised its guidance for diluted earnings per share from between $20.50 and $23.50 to between $21.50 and $23.50. With the company raising the floor of its earnings forecast, investors bought into the stock over the past week.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Valmont Industries. The Motley Fool has a disclosure policy.