Analysts Are Updating Their Vulcan Materials Company (NYSE:VMC) Estimates After Its Second-Quarter Results

Shareholders might have noticed that Vulcan Materials Company (NYSE:VMC) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.0% to US$269 in the past week. Results were roughly in line with estimates, with revenues of US$2.2b and statutory earnings per share of US$2.48. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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, Vulcan Materials' 19 analysts currently expect revenues in 2026 to be US$8.17b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 4.5% to US$9.01. In the lead-up to this report, the analysts had been modelling revenues of US$8.13b and earnings per share (EPS) of US$9.09 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Vulcan Materials

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$326. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Vulcan Materials, with the most bullish analyst valuing it at US$365 and the most bearish at US$198 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Vulcan Materials' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vulcan Materials is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$326, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Vulcan Materials. Long-term earnings power is much more important than next year's profits. We have forecasts for Vulcan Materials going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Vulcan Materials .

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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.