Vulcan Materials Earnings: Here’s Why Shares are Up Now

Vulcan Materials Company (NYSE:VMC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.69%.

Vulcan Materials Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.23 in the quarter versus EPS of $-0.02 in the year-earlier quarter.

Revenue: Rose 6.42% to $738.73 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vulcan Materials Company reported adjusted EPS income of $0.23 per share. By that measure, the company beat the mean analyst estimate of $0.14. It missed the average revenue estimate of $741.41 million.

Quoting Management: Don James, Chairman and Chief Executive Officer, said, “Each of our operating segments reported solid growth in second quarter earnings, contributing to improved gross profit margin and earnings per share. We achieved these results despite challenging, wet weather conditions that sharply reduced June shipments in many markets. Demand for our products continues to benefit from recovery in private construction activity, particularly residential construction, in many of our key markets. We realized strong increases in second quarter aggregates shipments in key states – driven mostly by housing demand. Growth in residential construction activity, and its traditional following impact on private nonresidential construction, continues to underpin our expectations for volume and earnings improvement in 2013. Assuming more normal weather patterns, we expect that most of the delays in shipments due to weather in the first half of the year can be recovered in the second half of the year.”

Key Stats (on next page)…

Revenue increased 37.27% from $538.16 million in the previous quarter. EPS increased to $0.23 in the quarter versus EPS of $-0.47 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.29 and has not changed. For the current year, the average estimate has moved down from a profit of $0.02 to a loss of $0.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)