logo
Share SHARE
FONT-SIZE Plus   Neg

Valspar Q1 Profit Down, Cuts FY View; Shares Down

Paints and coatings maker Valspar Corp. (VAL: Quote), Tuesday reported a slight decline in profit for the first quarter, as revenues dropped due to weaker-than-anticipated international markets. Both earnings and revenues for the quarter fell short of analysts' estimates.

Moving ahead, the company trimmed its full-year earnings expectations, anticipating weak demand in certain international markets to continue. Valspar shares are currently down near nine percent on the New York Stock Exchange.

Chief Executive Gary Hendrickson said, "Although we made substantial progress this quarter on a number of key initiatives, international markets were weaker than anticipated."

The Minneapolis, Minnesota-based company's first-quarter profit inched down to $55.02 million from $55.78 million last year. On a per share basis, earnings improved to $0.60 from $0.58 last year, on lower number of shares outstanding for the quarter.

Last year, the company recorded a one-time restructuring charge of $0.04 per share. The absence of any charges in the latest first-quarter partially helped the company's bottom line.

On average, 13 analysts polled by Thomson Reuters estimated earnings of $0.67 per share for the quarter. Analysts' expectations typically exclude one-time items.

First-quarter revenues dropped to $875.2 million from $885.6 million last year. Analysts estimated revenues of $922.05 million for the quarter.

On a reported basis, gross margin advanced to 33.6 percent from 33.1 percent last year.

Looking forward to full-year 2013, Valspar now expect earnings of $3.60 to $3.80 per share, down from previous estimate of $3.65 and $3.85 per share. The Street currently expect earnings of $3.79 per share for the year.

VAL is currently trading at $61.00, down $5.93 or 8.86%, on a volume of 1.3 million, which is above the three-month average.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
BlackRock (BLK) said its iShares division has launched the iShares Short Maturity Municipal Bond ETF (MEAR). The move by iShares, the world's largest manager of exchange traded funds, is part of efforts to boost its lineup of fixed income ETFs. iShares Short Maturity Municipal Bond ETF is actively... The drought crisis in California will not abate any time soon despite the onset of a somewhat weak El Nino, endangering crops and putting farmers and others to hardship. German auto giant BMW has refuted reports it is in discussion with tech giant Apple Inc. (AAPL) related to the making of an electric car. BMW has clarified that its discussion with Apple was not related to building an electric car but were "regular talks," according to a report from Reuters. On...
comments powered by Disqus
RELATED NEWS
Trade VAL now with 
Follow RTT