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The Valspar Corporation (VAL - Free Report) saw its earnings (as reported) rise 15.2% to $1.44 per share in third-quarter fiscal 2016 (ended Jul 29, 2016) from $1.25 recorded in the prior-year quarter.
Adjusted earnings (barring non-recurring items including merger-related expenses of $5 million) came in at $1.57 per share in the fiscal third quarter, up from $1.33 recorded a year ago. Earnings per share also beat the Zacks Consensus Estimate of $1.44.
Revenues fell roughly 0.6% year over year to $1,141.9 million in the reported quarter. Foreign currency translation unfavorably impacted net sales by 2%. Sales also lagged the Zacks Consensus Estimate of $1,178 million.
Sales from Valspar’s larger Coatings segment dropped 1.4% year over year to $631 million in the fiscal third quarter. Foreign currency translation hurt sales by 3% while acquisitions contributed 1%. Sales volumes increased 1% in the quarter. Volume growth in the Coil and Wood product lines contributed to the segment’s performance.
Revenues from the Paints segment improved 0.4% year over year to $445.4 million in the reported quarter. Currency fluctuations hurt sales by 2%. This was more than offset by acquisitions which contributed 4% to net sales. Volumes increased 3% in the quarter, led by growth in International regions. Acquisitions contributed 2% to volume growth. The segment saw positive impact from the Quest acquisition.
Financials
Valspar ended the fiscal third quarter with cash and cash equivalents of around $170.2 million, down 50.3% year over year. Long-term debt decreased around 8.8% year over year to roughly $1,557 million.
Valspar paid a quarterly dividend of 33 cents per share to its shareholders in the quarter.
Proposed Merger
Valspar and Sherwin-Williams (SHW - Free Report) entered into a definitive merger agreement in Mar 2016. Per the deal, Sherwin-Williams will purchase Valspar for roughly $11.3 billion or $113 cash per share. The proposed merger has been approved by Valspar’s shareholders on Jun 29 in a Special Meeting for Shareholders and is likely to conclude by the first quarter of calendar year 2017, subject to customary closing conditions.
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Valspar's (VAL) Q3 Earnings Beat Estimates, Revenues Trail
The Valspar Corporation (VAL - Free Report) saw its earnings (as reported) rise 15.2% to $1.44 per share in third-quarter fiscal 2016 (ended Jul 29, 2016) from $1.25 recorded in the prior-year quarter.
Adjusted earnings (barring non-recurring items including merger-related expenses of $5 million) came in at $1.57 per share in the fiscal third quarter, up from $1.33 recorded a year ago. Earnings per share also beat the Zacks Consensus Estimate of $1.44.
Revenues fell roughly 0.6% year over year to $1,141.9 million in the reported quarter. Foreign currency translation unfavorably impacted net sales by 2%. Sales also lagged the Zacks Consensus Estimate of $1,178 million.
Segment Highlights
Sales from Valspar’s larger Coatings segment dropped 1.4% year over year to $631 million in the fiscal third quarter. Foreign currency translation hurt sales by 3% while acquisitions contributed 1%. Sales volumes increased 1% in the quarter. Volume growth in the Coil and Wood product lines contributed to the segment’s performance.
Revenues from the Paints segment improved 0.4% year over year to $445.4 million in the reported quarter. Currency fluctuations hurt sales by 2%. This was more than offset by acquisitions which contributed 4% to net sales. Volumes increased 3% in the quarter, led by growth in International regions. Acquisitions contributed 2% to volume growth. The segment saw positive impact from the Quest acquisition.
Financials
Valspar ended the fiscal third quarter with cash and cash equivalents of around $170.2 million, down 50.3% year over year. Long-term debt decreased around 8.8% year over year to roughly $1,557 million.
Valspar paid a quarterly dividend of 33 cents per share to its shareholders in the quarter.
Proposed Merger
Valspar and Sherwin-Williams (SHW - Free Report) entered into a definitive merger agreement in Mar 2016. Per the deal, Sherwin-Williams will purchase Valspar for roughly $11.3 billion or $113 cash per share. The proposed merger has been approved by Valspar’s shareholders on Jun 29 in a Special Meeting for Shareholders and is likely to conclude by the first quarter of calendar year 2017, subject to customary closing conditions.
VALSPAR CORP Price, Consensus and EPS Surprise
VALSPAR CORP Price, Consensus and EPS Surprise | VALSPAR CORP Quote
Zacks Rank
Valspar currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Mitsubishi Chemical Holdings Corporation (MTLHY - Free Report) and Innospec Inc. (IOSP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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