The 10-second takeaway
For the quarter ended April 26 (Q2), Valspar missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Gross margins dropped, operating margins expanded, net margins grew.
Valspar booked revenue of $1.03 billion. The 10 analysts polled by S&P Capital IQ predicted net sales of $1.05 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.91. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.90 per share. Non-GAAP EPS of $0.91 for Q2 were 8.3% higher than the prior-year quarter's $0.84 per share. GAAP EPS of $0.84 for Q2 were 5.0% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.5%, 110 basis points worse than the prior-year quarter. Operating margin was 13.6%, 50 basis points better than the prior-year quarter. Net margin was 7.5%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $4.17 billion. The average EPS estimate is $3.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valspar is outperform, with an average price target of $68.33.
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