Valmont Industries (NYSE: VMI) stock is surging 5.43% in pre-market trading on Tuesday after the infrastructure and agriculture equipment maker reported better-than-expected first-quarter earnings and reaffirmed its full-year outlook despite facing some headwinds.
The company reported Q1 earnings per share of $4.32, surpassing the Zacks Consensus Estimate of $4.24. This performance matched the earnings from the same period last year. Revenue came in at $969.3 million, slightly below analyst expectations of $976 million and down 0.9% year-over-year.
Investors appear encouraged by Valmont's ability to maintain profitability and its optimistic outlook in the face of challenges. The company reaffirmed its full-year 2025 guidance, projecting earnings per share between $17.20 and $18.80 on revenues of $4.0 billion to $4.2 billion. This show of confidence suggests that management believes the company can navigate current market conditions effectively.
Avner M. Applbaum, President and Chief Executive Officer, commented on the results: "Most of our end markets are showing resilience against the current backdrop of economic uncertainty, driving growth in key parts of our business. We're seeing continued strength in Infrastructure, particularly Utility and Telecommunications, as well as solid demand trends in International Agriculture."
The company's Infrastructure segment, which accounts for over 70% of total sales, demonstrated resilience with strong performance in Utility and Telecommunications products. However, the Agriculture segment faced headwinds, particularly in the North American market, although this was partially offset by robust international performance.
Valmont's ability to beat earnings expectations and maintain its outlook amid mixed market conditions has clearly resonated with investors, driving the significant pre-market stock price increase. As the trading day progresses, it will be interesting to see if this optimism holds and how analysts interpret the company's prospects for the remainder of the year.
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