The Valspar Earnings: Here’s Why the Stock is Falling Now

The Valspar Corporation (NYSE:VAL) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7%.

The Valspar Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 30.23% to $0.60 in the quarter versus EPS of $0.62 in the year-earlier quarter.

Revenue: Decreased 1.18% to $875.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Valspar Corporation reported adjusted EPS income of $0.60 per share. By that measure, the company missed the mean analyst estimate of $0.67. It missed the average revenue estimate of $922.05 million.

Quoting Management: “Although we made substantial progress this quarter on a number of key initiatives, international markets were weaker than anticipated,” said Gary E. Hendrickson, chairman and chief executive officer. “We continued to invest in our long term opportunities and remain confident we will achieve our new business plans for the full year. However, weak demand in certain international markets is expected to continue and thus we are adjusting our full-year guidance to $3.60 to $3.80 to reflect these market conditions.”

Key Stats (on next page)…

Revenue decreased 14.55% from $1.02 billion in the previous quarter. EPS decreased 30.23% from $0.86 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.01 and has not changed. For the current year, the average estimate has moved up from a profit of $3.76 to a profit of $3.79 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]