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Vulcan Materials Company VMC is scheduled to release first-quarter 2025 results on April 30, before the opening bell.
In the last reported quarter, the company’s adjusted earnings and revenues surpassed the Zacks Consensus Estimate by 23.3% and 1.4%, respectively. On a year-over-year basis, both metrics increased 48.6% and 1.1%.
Vulcan’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with an average surprise of 4.6%.
How are Estimates Placed for Vulcan Stock?
The Zacks Consensus Estimate for VMC’s first-quarter earnings per share has remained unchanged at 80 cents over the past 30 days. The estimated figure remains flat on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Vulcan Materials Company Price and EPS Surprise
Vulcan Materials Company price-eps-surprise | Vulcan Materials Company Quote
The consensus estimate for revenues is pegged at $1.68 billion, indicating an 8.7% year-over-year increase.
Factors Influencing VMC’s Q1 Results
Vulcan's first-quarter revenues are anticipated to have experienced a year-over-year increase, driven by strong pricing gains across its product lines, recent acquisitions and stable demand in the legacy business. Continued expansion in public construction activity is expected to have offset a more moderate decline in private construction. Also, recent trends in warehouse starts and data centers have been encouraging.
The company’s strong pricing power is attributable to Vulcan Way of Selling discipline, which has enabled it to consistently expand cash gross profit per ton, even in quarters with declining volumes.
The Aggregates business, including crushed stone, sand and gravel and other aggregates (which accounted for 74% of total 2024 revenues), has been a major contributor to top-line growth. Our model expects net sales from the segment to grow 10.8% to $1.43 billion from a year ago. We also predict Aggregates volumes and Aggregates price to increase 3.9% and 6.8%, respectively, in the quarter.
Our model anticipates net sales from the Asphalt Mix segment (which accounted for 17% of total revenues) to be $195.5 million, indicating 5% growth from a year ago. We also predict volumes for the Asphalt Mix unit to grow 2.2% and prices to increase 2.8% year over year.
However, lower shipments in the Concrete segment, decline in private non-residential construction and adverse weather conditions are likely to have hurt the company’s top line in the to-be-reported quarter.
We anticipate revenues from the Concrete segment (which accounted for 9% of total revenues) to decline 10.9% to $132.1 million from a year ago. Concrete volumes are expected to decline 12.2%, but Concrete prices are expected to grow 1.5% year over year.
Meanwhile, higher cost inflation, the shortage of skilled labor and rising wage expenses are expected to have affected VMC’s first-quarter margins to some extent. The company remains focused on improving operational efficiencies through the Vulcan Way of Operating.