Vulcan Materials Faces Earnings Pressure Ahead of Q4 Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy VMC?
Source: Fool
- Earnings Outlook Decline: Vulcan Materials anticipates fourth-quarter revenue to drop to $1.96 billion, a 2.7% year-over-year decline, with analysts forecasting earnings per share (EPS) of $2.11, down from $2.17 in Q4 2024, indicating market concerns about the company's future performance.
- Strong Q3 Performance: In Q3 2023, Vulcan reported revenue of $2.29 billion, a 14.4% year-over-year increase, with EPS reaching $2.83, an 80% rise, which led to a roughly 5% stock price increase following the report.
- Impact of Transportation Costs: While transportation costs can erode profits, Vulcan reported a cash gross profit of $11.51 per ton, a 13% year-over-year increase, marking the 11th consecutive quarter of double-digit profitability improvement, showcasing effective cost management.
- Future Growth Expectations: The company expects aggregate shipments to rise by about 3% in 2025, with adjusted EBITDA projected between $2.35 billion and $2.45 billion, indicating that despite short-term challenges, there remains significant long-term growth potential.
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Analyst Views on VMC
Wall Street analysts forecast VMC stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 321.920
Low
316.00
Averages
334.13
High
370.00
Current: 321.920
Low
316.00
Averages
334.13
High
370.00
About VMC
Vulcan Materials Company is a supplier of construction aggregates and producer of aggregates-based construction materials. The Company’s segments include Aggregates, Asphalt and Concrete. The Aggregates segment produces and sells aggregates, such as crushed stone, sand and gravel, sand, and other aggregates and related products and services. This segment also includes a production stage and leased calcium operation located in Brooksville, Florida. This limestone quarry produces a supplement for end-use products such as animal feed and plastics. The Asphalt segment produces and sells asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee and Texas and provides asphalt construction paving services in Alabama, Tennessee and Texas. The Concrete segment produces and sells ready-mixed concrete in California, Maryland and Virginia. The Company provides the basic materials for the infrastructure delivered by trucks, ships, barges, and trains.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vulcan Materials Faces Earnings Pressure Ahead of Q4 Report
- Earnings Outlook Decline: Vulcan Materials anticipates fourth-quarter revenue to drop to $1.96 billion, a 2.7% year-over-year decline, with analysts forecasting earnings per share (EPS) of $2.11, down from $2.17 in Q4 2024, indicating market concerns about the company's future performance.
- Strong Q3 Performance: In Q3 2023, Vulcan reported revenue of $2.29 billion, a 14.4% year-over-year increase, with EPS reaching $2.83, an 80% rise, which led to a roughly 5% stock price increase following the report.
- Impact of Transportation Costs: While transportation costs can erode profits, Vulcan reported a cash gross profit of $11.51 per ton, a 13% year-over-year increase, marking the 11th consecutive quarter of double-digit profitability improvement, showcasing effective cost management.
- Future Growth Expectations: The company expects aggregate shipments to rise by about 3% in 2025, with adjusted EBITDA projected between $2.35 billion and $2.45 billion, indicating that despite short-term challenges, there remains significant long-term growth potential.
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AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
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Vulcan Materials Company Declares Quarterly Dividend Increase
- Quarterly Dividend Increase: Vulcan Materials Company has raised its quarterly cash dividend from $0.49 to $0.52 per share, marking a 6% increase that underscores the company's strong operational and financial performance.
- Confidence in Growth: CEO Ronnie Pruitt announced this is the ninth consecutive year of dividend increases, reflecting confidence in the resilience of the business and its ability to deliver sustainable, long-term value to shareholders, thereby enhancing investor trust.
- Industry Leadership: As the largest producer of construction aggregates in the U.S., Vulcan dominates the market in crushed stone, sand, and gravel, while also being a major producer of asphalt and ready-mixed concrete, further solidifying its influence in the construction sector.
- Shareholder Return Strategy: The increase in dividends not only enhances shareholder returns but also indicates the company's commitment to attracting and retaining investors through stable cash flows and ongoing profitability, promoting long-term investment value growth.
See More
Vulcan Materials Declares Quarterly Dividend Increase
- Dividend Increase: Vulcan Materials Company has announced a quarterly cash dividend increase from $0.49 to $0.52 per share, representing a 6% rise that underscores the company's ongoing financial health and profitability.
- Payment Schedule: The new dividend will be payable on March 23, 2026, with a record date of March 9, 2026, ensuring shareholders receive timely returns and bolstering investor confidence.
- Signal of Consistency: CEO Ronnie Pruitt noted this marks the ninth consecutive year of dividend increases, reflecting the company's confidence in its business resilience and sustainable long-term value, further solidifying its market position.
- Industry Leadership: As the largest producer of construction aggregates in the U.S., Vulcan Materials' strong performance in producing crushed stone, sand, and concrete ensures its significant presence in the S&P 500 index.
See More
VULCAN MATERIALS CO ANNOUNCES $0.52 PER SHARE QUARTERLY DIVIDEND
- Dividend Announcement: Vulcan Materials Company has declared a quarterly dividend of $0.52 per share.
- Shareholder Benefit: This dividend is intended to provide a return to shareholders, reflecting the company's ongoing commitment to shareholder value.
See More
Powell's Tenure Nears End, Market Focuses on His Legacy
- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
See More
Vulcan Materials Faces Earnings Pressure Ahead of Q4 Report
- Earnings Outlook Decline: Vulcan Materials anticipates fourth-quarter revenue to drop to $1.96 billion, a 2.7% year-over-year decline, with analysts forecasting earnings per share (EPS) of $2.11, down from $2.17 in Q4 2024, indicating market concerns about the company's future performance.
- Strong Q3 Performance: In Q3 2023, Vulcan reported revenue of $2.29 billion, a 14.4% year-over-year increase, with EPS reaching $2.83, an 80% rise, which led to a roughly 5% stock price increase following the report.
- Impact of Transportation Costs: While transportation costs can erode profits, Vulcan reported a cash gross profit of $11.51 per ton, a 13% year-over-year increase, marking the 11th consecutive quarter of double-digit profitability improvement, showcasing effective cost management.
- Future Growth Expectations: The company expects aggregate shipments to rise by about 3% in 2025, with adjusted EBITDA projected between $2.35 billion and $2.45 billion, indicating that despite short-term challenges, there remains significant long-term growth potential.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Vulcan Materials Company Declares Quarterly Dividend Increase
- Quarterly Dividend Increase: Vulcan Materials Company has raised its quarterly cash dividend from $0.49 to $0.52 per share, marking a 6% increase that underscores the company's strong operational and financial performance.
- Confidence in Growth: CEO Ronnie Pruitt announced this is the ninth consecutive year of dividend increases, reflecting confidence in the resilience of the business and its ability to deliver sustainable, long-term value to shareholders, thereby enhancing investor trust.
- Industry Leadership: As the largest producer of construction aggregates in the U.S., Vulcan dominates the market in crushed stone, sand, and gravel, while also being a major producer of asphalt and ready-mixed concrete, further solidifying its influence in the construction sector.
- Shareholder Return Strategy: The increase in dividends not only enhances shareholder returns but also indicates the company's commitment to attracting and retaining investors through stable cash flows and ongoing profitability, promoting long-term investment value growth.
See More
Vulcan Materials Declares Quarterly Dividend Increase
- Dividend Increase: Vulcan Materials Company has announced a quarterly cash dividend increase from $0.49 to $0.52 per share, representing a 6% rise that underscores the company's ongoing financial health and profitability.
- Payment Schedule: The new dividend will be payable on March 23, 2026, with a record date of March 9, 2026, ensuring shareholders receive timely returns and bolstering investor confidence.
- Signal of Consistency: CEO Ronnie Pruitt noted this marks the ninth consecutive year of dividend increases, reflecting the company's confidence in its business resilience and sustainable long-term value, further solidifying its market position.
- Industry Leadership: As the largest producer of construction aggregates in the U.S., Vulcan Materials' strong performance in producing crushed stone, sand, and concrete ensures its significant presence in the S&P 500 index.
See More
VULCAN MATERIALS CO ANNOUNCES $0.52 PER SHARE QUARTERLY DIVIDEND
- Dividend Announcement: Vulcan Materials Company has declared a quarterly dividend of $0.52 per share.
- Shareholder Benefit: This dividend is intended to provide a return to shareholders, reflecting the company's ongoing commitment to shareholder value.
See More
Powell's Tenure Nears End, Market Focuses on His Legacy
- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
See More
