Wedbush Expects Increase in EPS for Valmont Industries' (VMI) FY16; Reiterates Neutral

Wedbush reiterated a Neutral rating on Valmont Industries (NYSE: VMI), and cut the price target to $118.00 (from $121.00), following the company's 4Q earnings report. Valmont reported net sales of $633.8 million, below the consensus estimates of $671.1 million. Adjusted EPS of $1.35 was also below the consensus estimates of $1.38. However, based on recent results and cost benefits in the coming year, Wedbush expects a modest increase in EPS in 2016 over 2015 despite slightly lower revenue.

Analyst David Rose commented, "Although revenues continue to be under pressure, Valmont is driving better-than-expected operating margins and more results that are closer to expectations as it benefits from recent restructuring actions. Based on recent results and cost benefits in the coming year, we expect a modest increase in EPS in 2016 over 2015 despite slightly lower revenue. However, we believe significant headwinds exist for 2016 and still see some risk to our outlook."

For an analyst ratings summary and ratings history on Valmont Industries click here. For more ratings news on Valmont Industries click here.

Shares of Valmont Industries closed at $111.85 yesterday.

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