UPDATE: Valspar Posts Better-Than-Expected FQ4 Earnings, Raises Dividend

The Valspar

reported stronger-than-expected earnings for the fiscal fourth quarter. The company's board announced a new $1.5 billion repurchase program and lifted dividend by 15% to $0.30 per share. The Minneapolis, Minnesota-based company posted quarterly earnings of $108.6 million, or $1.28 per share, compared to $63.5 million, or $0.72 per share, in the year-ago period. Excluding restructuring charges, the company earned $1.38 per share. Its sales climbed 11% to $1.2 billion. However, analysts were expecting earnings of $1.15 per share on revenue of $1.19 billion. Sales at the company's coatings segment surged 15% to $694 million, while sales at the paints segment climbed 7% to $479 million. Gary E. Hendrickson, chairman and chief executive officer said, “Looking ahead to 2015, we expect another year of growth. In our Coatings segment, we expect stable end markets and growth from new business wins. In the Paints segment, continued growth in China, Australia and Europe is expected, to be offset by an adjustment to our product line offering at a customer in North America.” Valspar now expects fiscal 2015 earnings of $4.45 to $4.65 per share, on total sales growth in the low single digits. Analysts expected earnings of $4.76 per share on sales growth of 6%. Valspar shares fell 0.11% to close at $84.89 yesterday.