The 10-second takeaway
For the quarter ended Oct. 26 (Q4), Valspar missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew.
Margins grew across the board.
Valspar logged revenue of $1.02 billion. The nine analysts polled by S&P Capital IQ wanted to see a top line of $1.07 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $1.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.85 per share. GAAP EPS were $0.79 for Q4 compared to -$3.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.3%, 40 basis points better than the prior-year quarter. Operating margin was 11.6%, 80 basis points better than the prior-year quarter. Net margin was 7.2%, 3,540 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $928.0 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $4.32 billion. The average EPS estimate is $3.80.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valspar is outperform, with an average price target of $57.83.
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