Valassis Communications Earnings: Here’s Why Investors Don’t Like These Results

Valassis Communications Inc. (NYSE:VCI) 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 13.25%.

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Valassis Communications Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10% to $0.54 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Decreased 6.96% to $482.52 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Valassis Communications Inc. reported adjusted EPS income of $0.54 per share. By that measure, the company missed the mean analyst estimate of $0.69. It missed the average revenue estimate of $489.8 million.

Quoting Management: “We are focused on improving execution, growing our share and achieving top and bottom-line growth,” said Rob Mason, Valassis President and Chief Executive Officer. “I am confident that we are taking the necessary steps to expedite our progress and expect to see positive results from our efforts in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 16.73% from $579.44 million in the previous quarter. EPS decreased 36.47% from $0.85 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.88 to a profit $0.87. For the current year, the average estimate has moved down from a profit of $3.51 to a profit of $3.44 over the last ninety days.

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