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Vulcan (VMC) Tops Q3 Earnings, Aggregates Shipments Increase

Vulcan Materials Company’s VMC third-quarter 2017 adjusted earnings of $1.04 per share beat the Zacks Consensus Estimate of 95 cents by 9.5%. Also, the bottom line increased about 2% on a year-over-year basis.

Total revenues of $1.09 billion also surpassed the Zacks Consensus Estimate of $1.06 billion by 2.8%. Sales increased 9% from the prior-year quarter.

Vulcan Materials Company Price, Consensus and EPS Surprise

 

 

Segment Details

Aggregates

Revenues increased 4.5% year over year to $858.7 million. Freight-adjusted revenues also inched up 4.3% year over year to $668.5 million.

Aggregates shipments (volumes) increased 1% year over year. Shipment trends were disrupted by hurricanes in Florida, Georgia, Gulf Coast, North Carolina, South Carolina and coastal Texas markets. However, markets outside these areas grew mid-single digits compared to the prior-year quarter. Aggregates segment gross profit was $259 million, down 1% year over year.

Non-Aggregates

Revenues at the Asphalt Mix segment were $189.9 million, up 20.6%. Asphalt segment gross profit was $31 million, down by $2 million year over year.

Total revenues at the Concrete segment were $115.5 million, up 26.8% year over year. Concrete segment gross profit was $14 million in the quarter, down by $5 million from the prior-year quarter. Shipments increased 20% from the prior-year quarter.

Total revenues at the Calcium segment were $1.9 million, reflecting a decline of 14.7% from the prior-year quarter. The segment reported gross profit of $0.7 million, down by $0.1 million from the prior-year quarter.

Operating Highlights

Adjusted gross margin of 32.1% fell 310 basis points (bps) in the third quarter. Adjusted EBITDA increased 3.6% year over year to $311.8 million.

Selling, Administrative and General expenses were $73 million, down by $3 million year over year.

Financials

As of Sep 30, 2017, cash and cash equivalents were $701.2 million, up from $259 million at the end of 2016.

2017 Guidance

Adjusted EBITDA is expected at around $1 billion, compared to the prior projection of $1.05 billion to $1.13 billion.

Aggregates shipments are expected to be the same as 2016.

Zacks Rank & Peer Release

Vulcan carries a Zacks Rank #5 (Strong Sell).

PulteGroup Inc.’s PHM third-quarter 2017 adjusted earnings of 60 cents per share beat the Zacks Consensus Estimate of 59 cents by 1.7%. Also, quarterly earnings reflected a solid 40% improvement from the year-ago quarter’s 43 cents.

Upcoming Releases in the Construction Sector

Louisiana-Pacific Corp. LPX is scheduled to release its quarterly numbers on Nov 6. The Zacks Consensus Estimate for earnings is pegged at 77 cents, reflecting an increase of 140.6% on a year-over-year basis.

D.R. Horton, Inc. DHI is slated to release its quarterly numbers on Nov 9. The Zacks Consensus Estimate for earnings is pegged at 82 cents, showing an increase of 9.3% on a year-over-year basis.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report
 
Vulcan Materials Company (VMC): Free Stock Analysis Report
 
PulteGroup, Inc. (PHM): Free Stock Analysis Report
 
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
 
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