Jefferies Discusses Earnings From Vulcan Materials (VMC)

Jefferies & Co. has a Buy rating and a $52 price target on shares of Vulcan Materials VMC following earnings. In a note to investors, Jefferies writes, "The Q1 loss of $0.42 included $0.20 of one-off gains. Excluding these the loss of $0.62 was double Jefferies estimate of $0.31, and $0.12 worse than the Bloomberg consensus of a loss of $0.50. The company has maintained the majority of its full year guidance, but has reduced its forecasts for its small cement business. Jefferies goes on to say, "Vulcan has retained its forecasts for its aggregates business in 2011 of around a 2% increase in volumes and price increases of 1-3%. It continues to expect its asphalt earnings to increase, and the loss in its concrete business to be lower this year. However, Vulcan has reduced its expectations for its cement business, where it now expects its loss to be worse this year than in 2010, whereas three months ago it had expected a reduction in the loss." Shares of VMC closed at $44.20 yesterday.