Birmingham, Alabama-based Vulcan Materials Company (VMC) is a leading producer of construction aggregates, asphalt mix, ready-mix concrete, and calcium products, serving primarily the U.S. and Mexico. With a market cap of $32.7 billion, it operates in the construction materials sector, supplying key materials for public infrastructure and private construction projects. The company is expected to announce its Q3 earnings before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect the construction materials company to report a profit of $2.49 per share, up 8.7% from $2.29 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. VMC missed the consensus estimates by 4.9% in the most recent quarter.
In fiscal 2024, analysts expect VMC to report an EPS of $7.69, up 9.9% from $7 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 20.3% year-over-year to $9.25.
VMC stock is up 9.4% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 22.6% gains and the Materials Select Sector SPDR Fund’s (XLB) 12.3% returns over the same time frame.
Shares of Vulcan Materials dropped 4.4% on Aug. 6 due to weaker-than-expected Q2 revenue of $2 billion and adjusted earnings of $2.35 per share. The company also lowered its full-year adjusted EBITDA forecast, citing weaker demand for construction materials as high interest rates dampened housing growth. Additionally, weather disruptions affected construction activity and operating efficiencies, further contributing to the downbeat results.
The consensus estimate on Vulcan Materials stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among the 18 analysts covering the stock, 11 recommend a “Strong Buy,” one advises a “Moderate Buy,” and six suggest a “Hold” rating. This configuration is slightly less bullish than three months ago, with 12 analysts suggesting a “Strong Buy.”
The average target price for VMC is $275.62, indicating a potential upside of 11.3% from current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
