Vulcan Materials Rated Hold At Jefferies After Disappointing Quarter (VMC)

Jefferies & Co. is keeping its Hold rating and $56 price target on Vulcan Materials VMC after the industrial company reported disappointing earnings yesterday. In the report Jefferies writes, "Yesterday evening (Monday 2 August) after markets closed, Vulcan reported Q2-2010 EPS of a loss of $0.19. This was well below our forecast ($0.24) and Bloomberg's estimate of consensus ($0.245)." It goes on to say, "Cautious on outlook. For its aggregates business, Vulcan is predicting that volumes in the second half will only be between flat and 5% higher on the same period last year and it expects prices to be similar to last year. In Asphalt, after a poor first-half, Vulcan expects its second-half volumes and profitability to be similar to last year." Shares of Vulcan are being hit hard, down $2.99 to $43.86.