Vulcan Materials Company (NYSE:VMC) Released Earnings Last Week And Analysts Lifted Their Price Target To US$267

As you might know, Vulcan Materials Company (NYSE:VMC) recently reported its yearly numbers. The result was positive overall - although revenues of US$7.8b were in line with what the analysts predicted, Vulcan Materials surprised by delivering a statutory profit of US$6.98 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vulcan Materials after the latest results.

Check out our latest analysis for Vulcan Materials

Following last week's earnings report, Vulcan Materials' 19 analysts are forecasting 2024 revenues to be US$7.89b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 21% to US$8.65. In the lead-up to this report, the analysts had been modelling revenues of US$8.16b and earnings per share (EPS) of US$7.91 in 2024. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been a 8.6% lift in the price target to US$267, with the analysts signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Vulcan Materials analyst has a price target of US$300 per share, while the most pessimistic values it at US$162. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Vulcan Materials' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vulcan Materials.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vulcan Materials' earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Vulcan Materials going out to 2026, and you can see them free on our platform here..

You can also see whether Vulcan Materials is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.