Earnings Preview For Valmont Industries (VMI)

Valmont Industries, Inc. VMI reports 2011 first-quarter earnings after the closing bell on Thursday, April 14. Analysts expect a profit of $0.95 on sales of $539.57 million. This would represent earnings growth of 26.70% over last year. Earnings estimates have slipped $0.14 over the past 60 days. Analysts will look for sales growth in its Utility Towers and Irrigation Equipment divisions. The latter has benefited from strong levels of farm income. Additionally, investors will want to hear about a possible hike in the dividend given strong free cash flow generation. The stock has climbed over 50% since last September on optimism over the global economic recovery. It is currently trading at 19.6x 2011 estimates of $5.23 per share. Valmont has exceeded estimates in two of the past four quarters. The company produces fabricated metal products; pole and tower structures; and mechanized irrigation systems in the United States and internationally. The company operates through four segments: Engineered Support Structures, Utility Support Structures, Coatings, and Irrigation.