Valspar Cuts Annual EPS Forecast After Q3 Results Miss View - Update

(RTTNews) - Paint and coatings maker Valspar Corp (VAL) Tuesday reported higher profit and revenue for the third quarter that missed estimates, amid macro-economic headwinds in some general industrial market segments and certain international regions. Further, the firm cut its full year earnings outlook.

Net income for the quarter improved to $93.81 million from $86.41 million in the previous year. Earnings per share climbed to $1.04 from $0.92.

Excluding items, earnings totaled $1.07 per share, while it amounted to $0.97 per share last year. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales rose to $1.089 billion from $1.078 billion in the previous year. Analysts expected revenues of $1.13 billion.

Net sales in the Paints segment increased 3 percent to $455 million, driven by strength in the U.S. and China.

In the Coatings segment, sales edged up 1 percent to $573 million. Valspar said sales growth in packaging, coil and wood product lines was offset by lower demand in the general industrial product line, primarily in coatings for off-road equipment and shipping containers.

Gary Hendrickson, CEO, said, ''We continue to drive strong volume growth from our new business initiatives in the consumer paint, packaging and wood product lines. However, sales and earnings finished slightly below our expectations for the quarter due to continued macro-economic headwinds in key general industrial market segments and certain international regions.''

The firm continues to expect improved sales and earnings growth in the fourth quarter, but not at the level anticipated earlier in the year.

The company cut its adjusted earnings per share guidance to $3.45 to $3.55 from the previous outlook of $3.60 to $3.80 per share issued in February. Analysts expect earnings of $3.70 per share for the year.

VAL closed at $70.77 on Monday. The stock is down 1.2 percent in pre-market activity.