Valspar Corporation (The) (VAL) stock prices updated...
 

Valspar Corporation (The) stock price

Valspar Corporation (The) latest news:


  • 07/20/2017 06:27:20

    Sherwin-Williams misses on profit, offers soft outlook as it books charges for Valspar deal

    Shares of paint maker The Sherwin-Williams Co. slid 5.5% Thursday, after the company posted weaker-than-expected profit for the second quarter and offered soft guidance for the full year as it books charges for its acquisition of Valspar. The company said it had net income of $319.1 million, or $3.36 a share, in the second quarter, down from $378.1 million, or $3.99 a share, in the year-earlier period. Adjusted per-share earnings came to $3.80, well below the FactSet consensus of $4.56. The adjusted number includes charges related to the acquisition of Valspar, which closed on June 1. Sales rose 16% to $3.74 billion, just ahead of the FactSet consensus of $3.72 billion. The company said the Valspar deal has led it to change its reporting structure into three new operating segments; the Americas group will house Sherwin-Williams' previous paint stores group and Latin American coatings group; the consumer brands group will house consumer paint businesses of both companies; and the performance coatings group will house Sherwin-Williams' and Valspar's coatings group and automotive refinishes products business. The company said it expects Sherwin-Williams' core net sales to fall by a low to mid single digit percentage in the third quarter. It expects incremental sales from Valspar to be about $1 billion. EPS is expected to range from $3.70 to $4.10 in the quarter, including a $1.10 per share charge related to the acquisition. The current FactSet consensus is for third-quarter EPS of $4.96. For the full year, Sherwin-Williams's sales are expected to fall by a mid single digit percentage compared to 2016, while Valspar sales are expected to total about $2.4 billion. "With annual sales at that level, we are updating our guidance for full year 2017 diluted net income per common share to be in the range of $12.30 to $12.70 per share compared to $11.99 per share earned in 2016," said the company. That includes a $2.50 per share charge for acquisition costs. The current FactSet consensus is for full-year EPS of $14.17. Shares have gained 34% in 2017 through Wednesday, while the S&P 500 has gained 10.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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