Will Valmont (VMI) Beat Estimates Again in Its Next Earnings Report? – July 22, 2024

Looking for a stock that has consistently beaten earnings estimates and may be well-positioned to continue that streak into its next quarterly report? Valmont Industries (VMI – Free Report), a member of the Zacks Steel – Pipe and Tubes industry, could be a great candidate to consider.

Looking at the last two reports, the infrastructure equipment maker has seen a strong streak of beating earnings estimates. The company has beaten estimates by an average of 18.29% over the last two quarters.

For the last quarter, Valmont expected earnings of $3.24 per share but instead came out with earnings of $4.32, a surprise of 33.33%. For the previous quarter, the consensus estimate was $3.08 per share, when in reality earnings were $3.18 per share, a surprise of 3.25%.

Price and EPS are surprising

With this history, there has been a recent favorable revision to Valmont’s earnings estimates. In fact, the stock’s Zacks Earnings ESP (Expected Surprise Prediction) is positive, which is a great indicator of an earnings beat, especially when paired with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better deliver a positive surprise almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat consensus estimates could be as many as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a revision of the Zacks Consensus definition that is related to revision. The idea is that analysts revising their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other contributors to the consensus had previously predicted.

Valmont currently has an Earnings ESP of +4.95%, suggesting that analysts have become bullish on its near-term earnings potential. When we combine this positive Earnings ESP with the stock’s Zacks Rank #1 (Strong Buy), we can see that another beat is likely just around the corner. The company’s next earnings report is expected to be released on July 24, 2024.

When the Earnings ESP is negative, investors should remember that this will reduce the predictive power of the indicator. However, a negative value is not an indicator of a lack of earnings for the stock.

Many companies end up beating consensus EPS estimates, although that’s not the only reason their stocks appreciate. In addition, some stocks can remain stable even if they end up missing consensus estimates.

For this reason, it is very important to check a company’s Earnings ESP before its quarterly release to increase your chances of success. Make sure you use our Earnings ESP Filter to discover the best stocks to buy or sell before they are released.