Vulcan Materials Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Vulcan Materials Company (NYSE:VMC) will unveil its latest earnings on Thursday, November 8, 2012. Vulcan Materials is a producer of mainly crushed stone, sand and gravel, asphalt mix, concrete and cement.

Vulcan Materials Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 17 cents per share, a spike from a loss of 13 cents in the year-ago quarter. During the past three months, the average estimate has moved up from 16 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 17 cents during the last month.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net loss of 2 cents per share versus a mean estimate of net income of 6 cents per share. In the first quarter, the company beat estimates by 2 cents.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $18.3 million (14 cents a share) from a loss of $8.1 million (6 cents) a year earlier, missing analyst expectations. Revenue fell 1.1% to $694.1 million from $702 million.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price rose $6.46 (16.2%), from $39.89 to $46.35. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 20, 2012, when shares rose for 10 straight days, increasing 8.7% (+$3.43) over that span. It saw one of its worst periods between February 23, 2012 and March 2, 2012 when shares fell for seven straight days, dropping 6% (-$2.77) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.54 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.91 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 28.1% to $616.5 million while assets rose 3.5% to $951.2 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2.4% in the third quarter of the last fiscal year, 4.8% in the fourth quarter of the last fiscal year and 10%in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $787.4 million in revenue this quarter, a rise of 3.5% from the year-ago quarter. Analysts are forecasting total revenue of $2.64 billion for the year, a rise of 3.1% from last year’s revenue of $2.56 billion.

Analyst Ratings: There are mostly holds on the stock with eight of 12 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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