Investors in Valmont Industries, Inc. (NYSE:VMI) had a good week, as its shares rose 6.7% to close at US$297 following the release of its quarterly results. It was a credible result overall, with revenues of US$969m and statutory earnings per share of US$4.32 both in line with analyst estimates, showing that Valmont Industries is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Valmont Industries' six analysts are forecasting 2025 revenues to be US$4.09b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 4.8% to US$18.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.10b and earnings per share (EPS) of US$18.08 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Valmont Industries

With no major changes to earnings forecasts, the consensus price target fell 8.9% to US$352, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Valmont Industries at US$372 per share, while the most bearish prices it at US$325. This is a very narrow spread of estimates, implying either that Valmont Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Valmont Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Valmont Industries.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Valmont Industries analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Valmont Industries' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.