Valspar Q2 Adj. EPS Tops View - Quick Facts

(RTTNews) - Paint and coatings maker Valspar Corp. (VAL) reported that second-quarter net income was $90.3 million or $1.09 per share, compared to $86.0 million or $0.99 per share in the prior-year quarter.

Excluding certain items, adjusted net income for the quarter was $92.2 million, down from $92.6 million in the year-ago period, while earnings per share rose to $1.11 from $1.07 in the previous-year quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter decreased 7 percent to $1.08 billion from $1.16 billion in the comparable quarter last year. Wall Street expected revenues of $1.13 billion.

Net sales decreased 2 percent in local currency. Volumes dropped 3 percent driven by the expected decline in the Paints segment.

Looking ahead to fiscal 2015, the group continues to expect adjusted earnings in a range of $4.45 to $4.65 per share. The company is updating its fiscal 2015 annual sales guidance to reflect a sales decline in the low single-digits from fiscal 2014, compared to the previous guidance of approximately flat sales.

Street is currently looking for full-year 2015 earnings of $4.60 per share, on annual sales of $4.53 billion.

The company also announced that it has reached a definitive agreement to acquire the performance coatings businesses of Quest Specialty Chemicals, which includes products serving the automotive refinish and industrial end markets. The transaction, which is expected to close in the company's third fiscal quarter, is subject to customary closing conditions. Financial terms were not disclosed.