Valmont Industries (VMI) shares plummeted 5.35% in Tuesday's trading session, despite the company reporting better-than-expected third-quarter earnings and raising its full-year guidance. The sharp decline comes as a surprise, given the initial positive reaction to the earnings report in pre-market trading.
The infrastructure and agriculture equipment manufacturer reported Q3 adjusted earnings per share of $4.98, surpassing analysts' estimates of $4.62. Revenue for the quarter came in at $1.05 billion, slightly above Wall Street's expectations of $1.03 billion. Additionally, Valmont raised its full-year 2025 adjusted EPS guidance to a range of $18.70 to $19.50, up from the previous range of $17.50 to $19.50.
Despite these seemingly positive results, investors appear to be focusing on other factors. The company's revenue growth of 2.5% year-over-year was modest, and its full-year revenue guidance of around $4.1 billion was slightly below analysts' expectations of $4.11 billion. This could suggest concerns about Valmont's growth trajectory, particularly in the challenging agricultural markets mentioned by CEO Avner M. Applbaum. The stark contrast between the pre-market gains and the subsequent sell-off indicates that investors may be reassessing the company's long-term prospects in light of these mixed signals.
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