uploads/2016/12/Part-1-4Q16-VAL-1.png

Here’s Valspar’s 4Q16 Earnings: Beat or Miss?

By

Updated

Valspar reported 4Q16 earnings

On Tuesday, December 20, 2016, Valspar (VAL) reported its fiscal 4Q16 earnings before the market opened. It reported adjusted EPS (earnings per share) of $1.37, missing Wall Street analysts’ estimate of $1.50. On a year-over-year basis, its adjusted EPS has risen 1.5%.

The rise in adjusted EPS is mainly due to improved margins as a result of reduced cost of sales. On a reported basis, Valspar posted EPS of $1.27 compared to $1.26 in 4Q15.

Article continues below advertisement

Stock price movement

On December 20, Valspar stock remained steady with a marginal rise of 0.05% from its previous day’s closing price of $103.64. That same day, the ProShares S&P MidCap 400 Dividend Aristocrats (REGL) rose 0.30%. The ETF has invested 2.0% of its holding in Valspar.

Since the beginning of 2016, Valspar has risen 25.0% as of December 20, 2016. Below are the year-to-date (or YTD) returns of Valspar’s peers as of December 20:

  • Sherwin-Williams (SHW): rose 2.5%
  • PPG Industries (PPG): fell 3.2%
  • RPM International (RPM): rose 22.9%

Dividend payment

Valspar’s fiscal year runs from November 1 through October 31. For fiscal 4Q16, VAL paid a dividend of $0.33 per share. For fiscal 2016, it paid a dividend of $1.32 per share.

VAL also paid its first quarterly dividend for fiscal 2017. It announced a dividend of $0.37 per share, implying a rise 12.0% from the previous year. The dividend was paid on December 15, 2016, with a record date of December 1, 2016.

In this series, we’ll be looking at Valspar’s fiscal 4Q16 earnings in detail for all its reportable segments. We’ll also look at the latest analyst recommendations.

Let’s start by looking at Valspar’s revenue.

Advertisement

More From Market Realist