logo
Share SHARE
FONT-SIZE Plus   Neg

Valspar Q1 Profit Down, Cuts FY View; Shares Down

Paints and coatings maker Valspar Corp. (VAL), 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
Computer and printer maker Hewlett-Packard Co. said Thursday after the markets closed that its second quarter profit fell 21% from last year, hurt by lower revenue and costs related to the planned separation of the company. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Accounting software maker Intuit reported a plunge in third-quarter profit, hurt by impairment charges, even as results topped Wall Street estimates, driven by growth in small business segment amid a strong tax season. Struggling teen-apparel retailer Aeropostale Inc. (ARO), Thursday said its first-quarter loss narrowed from a year ago, driven largely by stronger margins even as revenues continued to plunge dropped. Nevertheless, the company lost almost one-fifth of its market value in after-hours trade, with the...
comments powered by Disqus
Follow RTT