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Valspar’s 3Q16 Earnings Beat Analysts’ Estimates

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Valspar reports its 3Q16 earnings

On September 7, 2016, Valspar (VAL) reported its 3Q16 earnings after market hours. Valspar reported adjusted EPS (earnings per share) of $1.57 and beat Wall Street analysts’ estimate of $1.45. On a year-over-year basis, adjusted EPS grew 18%. The increase in adjusted EPS is mainly due to improved margins resulting from reduced sales costs.

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Stock price movement

On September 8, Valspar’s stock price rose 0.03% from its previous day’s closing price of $105.82. On the same day, the iShares Core S&P Mid-Cap ETF (IJH) fell 0.43%. This ETF has invested 0.50% of its holdings in Valspar. Since the beginning of 2016, Valspar has gained 27.6% as of September 8. Below are the year-to-date (or YTD) returns of Valspar’s peers as of September 8.

  • Sherwin-Williams (SHW) rose 9.2%
  • PPG Industries (PPG) rose 6.6%
  • RPM International (RPM) rose 25.1%

Valspar reports a dividend

Valspar will pay a dividend of $0.33 per share on the company’s common stock for 3Q16. Valspar has set the record date for the dividend at September 1, 2016, with a payable date of September 15, 2016. Valspar has increased its annual dividend for 38 years consecutively.

In this series, we’ll look at Valspar’s 3Q16 earnings in detail with reference to all reported segments. We’ll also look into its valuation compared to peers. In the next part of this series, we’ll discuss Valspar’s revenue.

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