US$352: That's What Analysts Think Valmont Industries, Inc. (NYSE:VMI) Is Worth After Its Latest Results

It's been a good week for Valmont Industries, Inc. (NYSE:VMI) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.7% to US$297. Results were roughly in line with estimates, with revenues of US$969m and statutory earnings per share of US$4.32. 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 Valmont Industries after the latest results.

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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. Per-share earnings are expected 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

The consensus price target fell 8.9% to US$352, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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 Valmont Industries analyst has a price target of US$372 per share, while the most pessimistic values it at US$325. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Valmont Industries' revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last 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. Factoring in the forecast slowdown in growth, it seems obvious that Valmont Industries is also expected to grow slower than other industry participants.

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.