Ahead of the Bell: Vulcan Materials estimates cut

"We are encouraged that a public infrastructure stimulus appears likely, but at this point we have more questions than answers with regard to the amount, timing and funding sources, particularly at the state level," KeyBanc analyst Christopher D. Manuel wrote in a note to clients. "In a best case scenario in which a plan is approved prior to year-end, we believe it would be at least (the second quarter of 2009) and more likely (third quarter of 2009) or later before any increased funding would translate to incremental construction activity."

Manuel also said the share price appears "to be already factoring in some benefit from increased public (infrastructure) funding," despite a lack of clarity about the size and timing of any increase in government infrastructure spending

Manuel maintained his "Hold" rating on Vulcan, which provides gravel, sand and other materials for infrastructure construction. He cut his 2008 earnings-per-share estimate to $1.95 from $2.55 and his 2009 earnings-per-share estimate to $2.30 from $2.80.

"We caution investors that results are not likely to show much, if any, improvement in the earnings trajectory until easier comparisons are lapped in (third quarter of 2008) and the magnitude of the recovery that will occur is difficult to predict at this point," Manuel wrote.