Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Vulcan Materials Company (VMC) Earnings: An Early Look

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors, and Vulcan Materials Company (NYSE:VMC) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

Vulcan Materials Company (NYSE:VMC)The housing market has bounced back strongly, and many companies, including Vulcan Materials, are starting to see the positive effects of greater housing construction activity. Let’s take an early look at what’s been happening with Vulcan Materials over the past quarter and what we’re likely to see in its quarterly report on Thursday.

Stats on Vulcan Materials

Analyst EPS Estimate ($0.10)
Year-Ago EPS ($0.19)
Revenue Estimate $621 million
Change From Year-Ago Revenue 1%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Will Vulcan Materials build higher this quarter?
Analysts have gotten a bit more optimistic about Vulcan over the course of the past few months, raising their earnings-per-share estimates by a penny and boosting 2013 full-year EPS by $0.03. But the stock has gotten a much bigger boost, rising almost 20% just since mid-November.

During the housing bust, Vulcan and its construction-aggregate peers felt the pinch. But as housing has recovered, new-home starts and permits have risen, and that points to future growth leading to improved demand for aggregates and associated materials.

In addition, recovery efforts from Hurricane Sandy have created new construction demand. Cemex SAB de CV (ADR) (NYSE:CX) reported an 11% rise in revenue during the fourth quarter, as the cement-maker benefited from improving conditions throughout the construction industry. Similarly, wallboard maker USG Corporation (NYSE:USG) saw a 12% increase in sales, with wallboard prices rising more than 17% due to extremely high demand.

One interesting deal to look for further clarification on is Plum Creek Timber Co. Inc. (NYSE:PCL)‘s purchase of a royalty stream from Vulcan for $75 million. The deal helps Plum Creek diversify its timber exposure and gets Vulcan some valuable cash, but with Plum Creek getting a 10.5% royalty on the sale of about 144 million tons of crushed stone over the next 25 years, the move will affect Vulcan’s cash flow well into the future.

In Vulcan’s report, watch for how the company expects to respond to these improving conditions in the industry. With Martin Marietta Materials, Inc. (NYSE:MLM) maintaining a big edge in profitability over Vulcan, investors need to know how Vulcan can stand up to its competitors and outperform them in the future.

The article Vulcan Materials Earnings: An Early Look originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!