Vulcan (VMC) Tops Q3 Earnings, Aggregates Shipments Increase

Vulcan Materials Company’s (NYSE: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

Vulcan Materials Company Price, Consensus and EPS Surprise | Vulcan Materials Company Quote

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 (NYSE: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. (NYSE: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. (NYSE: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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