Piper Jaffray Lowers Q1, FY11 Estimates On VCI

Flowing through Q4's revenue underperformance and adjusting for management's flat y/y revenue direction in Q1, Piper Jaffray is reducing its Valassis Communications

Q1 and FY11 revenue estimates from $562.4M and $2.469B, to $553.6M (+0.6% y/y) and $2.437B (+4.4% y/y), resp. “Our Q1 and FY11 adjusted GAAP EPS estimates (excluding one-time items) are reduced from $0.55 and $3.02, to $0.48 and $2.92, resp. Q1 EPS adjustments primarily reflect reduced top-line, while FY11 EPS adjustments are partially offset by our expected 3.6M shares repurchased for the year, which assumes 60% of the $192.7M authorized, or $116M, is utilized at $32/share, resulting in ~$0.12 accretion,” Piper Jaffray writes. “If we assume 100% is utilized at $32/share, accretion is ~$0.21, or an incremental $0.09 above our FY11 estimate.” Valassis Communications currently trades at $29.68.