Valmont (VMI) stock soared 5.13% in the pre-market trading session on Tuesday, as the infrastructure and agriculture solutions provider issued upbeat guidance for fiscal 2025 and unveiled a capital allocation plan aimed at boosting shareholder returns.
The key drivers behind Valmont's stock surge are as follows:
1. Strong Fiscal 2025 Outlook: Valmont forecasted fiscal 2025 earnings per share (EPS) in the range of $17.20 to $18.80, surpassing the FactSet consensus estimate of $18.06. Additionally, the company projected net sales between $4 billion and $4.2 billion, marginally above the FactSet estimate of $4.15 billion.
2. Capital Allocation Plan: Valmont announced a $700 million share repurchase authorization, representing around 10% of the company's current market capitalization. The company also increased its quarterly dividend by 13% to $0.68 per share, reflecting its commitment to enhancing shareholder value.