(VMC) - In early-August that its second-quarter profit rose 22% as margins improved, and raised its outlook for the year

Vulcan Materials has exceeded earnings estimates in two out of the past three quarters, with two analysts raising their estimates for this year. Over the past 60 days, this year's estimates have increased 10 cents to $4.74 per share, while next year's numbers have jumped 13 cents to $5.54 per share. Full Analysis Vulcan Materials Company (VMC) and its subsidiaries engage in the production, distribution, and sale of construction aggregates and other construction materials and related services in the United States and Mexico. Its construction aggregates include crushed stone, sand and gravel, rock asphalt, and recrushed concrete, which are used in highway construction and maintenance, as well as in the production of asphaltic and portland cement concrete mixes, and as railroad track ballast. It also offers other products and services, including asphalt mix and related products, concrete, trucking services, and water transportation services. The company's customers include heavy construction and paving contractors; residential and commercial building contractors; concrete products manufacturers; state, county, and municipal governments; and railroads. The company said in early-August that its second-quarter profit rose 22% as margins improved, and raised its outlook for the year. Revenue rose 14 percent to $888.2 million from $782.1 million last year, as the cost of revenue grew only 10 percent to $630.4 million. The company forecast $1.40 to $1.56 per diluted share from continuing operations in the third quarter, and $4.60 to $4.85 for the full year, up from a previous estimate of $4.35 to $4.60. Don James, Vulcan's Chairman and Chief Executive Officer, stated, "We are very pleased with the earnings growth realized in the second quarter. Revenue in all three major product lines increased sharply and margins continued to expand. The strong pricing momentum and solid demand for our products we experienced in 2005 is continuing in 2006. The company has exceeded earnings estimates in two out of the past three quarters, with two analysts raising their estimates for this year. Over the past 60 days, this year's estimates have increased 10 cents to $4.74 per share, while next year's numbers have jumped 13 cents to $5.54 per share. The stock is attractively valued at 13.7x next year's estimates, well below the projected long-term growth rate of 25%, giving the stock a PEG ratio of 0.55. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home