Valassis Communications 3Q Slightly Below J.P. Morgan Estimate

Valassis Communications, Inc.

reported overall solid Q3 results with EPS of $0.52, “below our $0.57 estimate, though on an adj. EBITDA basis slightly ahead at $80m (ex. $8.6m stock comp) vs. our $79m,” J.P. Morgan reports. Revenues grew 5.2% driven by surprisingly strong Neighborhood Targeted growth of 24% while growth in the key shared mail business came in slower than expected at 2%. Company op. margin improved nearly 200bps. Valassis Communications currently trades at $32.90.