Valspar Q1 Earnings Beat Expectations

reported better-than-expected earnings for the fisval second quarter on Wednesday. The Minneapolis, Minnesota-based company reported quarterly net income of $90.3 million, or $1.09 per share, compared to $86 million, or $0.99 per share, in the year-ago period. Excluding items, the company earned $1.11 per share. Its revenue dropped 7 percent year-over-year to $1.08 billion. However, analysts were expecting earnings of $1.10 per share on revenue of $1.11 billion. The average estimate among 4 Estimize users was for earnings of $1.14 per share and revenue of $1.12 billion. Total volumes slipped 3 percent in the quarter. Net sales in the Coatings segment dropped 1 percent to $615 million, while sales in the Paints segment fell 15 percent to $403 million in the fiscal second quarter. During the quarter, Valspar repurchased 1.1 million shares of its stock for $92.5 million. "Our results for second quarter were in line with our expectations. EPS (as adjusted) grew four percent, despite the negative impact of currency translation and the expected volume decline in our Paints segment in North America," said Gary E. Hendrickson, chairman and chief executive officer. "We saw continued volume and profit growth from our Coatings segment, driven by new business wins and benefits from productivity and cost savings. In the Paints segment, volume and sales were up in local currency in all of our international regions." For the full year, Valspar reaffirmed its earnings forecast of $4.45 to $4.65 per share. The company announced its plans to acquire the performance coatings businesses from Quest Specialty Chemicals. Valspar shares gained 0.08 percent to $86.00 in pre-market trading.