With a market cap of $35.7 billion, Birmingham, Alabama-based Vulcan Materials Company (VMC) is a leading producer and supplier of construction aggregates in the United States. Operating through four segments: Aggregates; Asphalt; Concrete; and Calcium, the company provides essential materials for public infrastructure, residential, and commercial construction projects, as well as calcium products for various industrial applications.
VMC is expected to release its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 18. Ahead of this event, analysts project the construction materials company to report a profit of $1.76 per share, reflecting an increase of 20.6% from $1.46 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarterly reports while missing on two other occasions. In Q3, VMC missed the consensus EPS estimate by a margin of 5.1%.
For fiscal 2024, analysts forecast VMC to report EPS of $7.16 per share, up 2.3% from $7 per share in fiscal 2023. Furthermore, EPS is anticipated to grow 23% year-over-year to $8.81 in fiscal 2025.
Vulcan Materials has risen 22.1% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 26.5% gain. But, the stock has outpaced the Materials Select Sector SPDR Fund's (XLB) 7.9% return over the same time frame.
Despite reporting weaker-than-expected Q3 adjusted EPS of $2.22 and total revenue of $2 billion, shares of VMC surged 6.4% on Oct. 30. The company achieved a 10% increase in aggregate cash gross profit per ton to $10.89, marking its eighth consecutive quarter of double-digit growth, and the 140 basis-point improvement in adjusted EBITDA margin to 29%. Additionally, Vulcan's acquisition of Wake Stone Corporation expanded its footprint in the high-growth Carolinas region. The company’s updated guidance for high-single-digit price increases and double-digit growth in cash gross profit per ton for 2025 further boosted investor confidence.
Analysts' consensus view on Vulcan Materials stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, 12 suggest a "Strong Buy," one gives a "Moderate Buy," and six recommend a "Hold." This configuration is slightly more bullish than three months ago, with an 11 "Strong Buy" rating.
As of writing, VMC is trading below the average analyst price target of $304.44.
