The 10-second takeaway
For the quarter ended June 30 (Q2), Valassis Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.
Gross margins grew, operating margins contracted, net margins increased.
Valassis Communications chalked up revenue of $495.9 million. The four analysts polled by S&P Capital IQ foresaw a top line of $507.6 million on the same basis. GAAP reported sales were 8.2% lower than the prior-year quarter's $540.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.70. The five earnings estimates compiled by S&P Capital IQ forecast $0.77 per share. Non-GAAP EPS of $0.70 for Q2 were 7.9% lower than the prior-year quarter's $0.76 per share. GAAP EPS of $0.68 for Q2 were 33% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 26.5%, 50 basis points better than the prior-year quarter. Operating margin was 10.2%, 80 basis points worse than the prior-year quarter. Net margin was 5.4%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $492.7 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $3.12.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 154 members out of 223 rating the stock outperform, and 69 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Valassis Communications a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valassis Communications is outperform, with an average price target of $30.00.
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