Valspar Q3 Profit Beats Expectations

reported better-than-expected earnings for its fiscal third quarter and lifted the bottom end of its earnings forecast for the full year. The Minneapolis, Minnesota-based company posted a quarterly profit of $102.9 million, or $1.25 per share, versus a year-ago profit of $97.8 million, or $1.14 per share. Excluding one-time items, the company's earnings came in at $1.33 per share. Its sales dropped to $1.15 billion from $1.23 billion. However, analysts were expecting earnings of $1.26 per share on revenue of $1.17 billion. The average estimate among 4 Estimize users was for earnings of $1.27 per share and revenue of $1.17 billion. The company's sales in the coatings segment declined 6 percent to $640 million, while sales in its paints segment dropped 7 percent to $444 million. During the quarter, Valspar repurchased 900 thousand shares of its stock for $75 million. "We delivered solid performance in the quarter, with a 6 percent increase in adjusted EBIT and a 10 percent increase in EPS. These results were driven by our strong commercial execution and significant productivity initiatives, despite the impact of unfavorable currency and the change in our North American Paint business," said Gary E. Hendrickson, chairman and chief executive officer. For the year, Valspar now projects earnings of $4.55 to $4.65 per share, versus its earlier forecast of $4.45 to $4.65 per share. It also expects sales to fall in the "mid single-digits" versus its prior guidance of a "low single-digits" drop. Valspar shares closed at $75.73 yesterday.