Investors in Vulcan Materials Company (NYSE:VMC) had a good week, as its shares rose 8.1% to close at US$267 following the release of its quarterly results. Revenues were US$1.6b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.97, an impressive 25% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Vulcan Materials' 22 analysts is for revenues of US$8.14b in 2025. This reflects a notable 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to US$8.50. Before this earnings report, the analysts had been forecasting revenues of US$8.24b and earnings per share (EPS) of US$8.31 in 2025. So the consensus seems to have become somewhat more optimistic on Vulcan Materials' earnings potential following these results.

See our latest analysis for Vulcan Materials

There's been no major changes to the consensus price target of US$290, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Vulcan Materials analyst has a price target of US$325 per share, while the most pessimistic values it at US$185. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.3% per year. So it's pretty clear that Vulcan Materials is forecast to grow substantially faster than its industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vulcan Materials' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$290, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vulcan Materials going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted  1 warning sign for Vulcan Materials  you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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