Valspar 4Q adj. profit, revenue beat Street's view

Valspar 4Q adj. profit, revenue beat analysts' estimates; raises quarterly dividend by 13 pct.

Associated Press

NEWS: Valspar's fiscal fourth-quarter net income declined 14 percent, mostly stung by higher restructuring charges.

The paint and coatings maker's adjusted profit and revenue topped analysts' expectations. The company is also increasing its quarterly dividend by 13 percent.

Its stock rose in midday trading on Tuesday.

DETAILS: Valspar said its fourth-quarter U.S. sales climbed 12 percent, led by consumer paints, coil and wood products.

Valspar Corp. also said that it is raising its quarterly dividend to 26 cents from 23 cents. The dividend will be paid on Dec. 13 to shareholders of record on Dec. 2.

NUMBERS: The company earned $63.5 million, or 72 cents per share, for the three months ended Oct. 25. That's down from $73.8 million, or 79 cents per share, last year.

Removing restructuring charges and acquisition-related charges, earnings were 97 cents per share.

Analysts surveyed by FactSet expected earnings of 91 cents per share.

Revenue climbed 9 percent to $1.11 billion from $1.02 billion. Wall Street called for $1.08 billion in revenue.

For the full year, Valspar earned $289.3 million, or $3.20 per share. In the 2012 fiscal year it earned $292.5 million, or $3.10 per share.

Adjusted profit was $3.54 per share.

Annual revenue increased 2 percent to $4.1 billion from $4.02 billion.

FUTURE: Valspar foresees fiscal 2014 adjusted earnings of $3.95 to $4.15 per share. Revenue is predicted to rise 7 percent to 9 percent. Based on 2013's revenue of $4.1 billion, this implies approximately $4.39 billion to $4.47 billion.

Analysts expect full-year earnings of $4.12 per share on revenue of $4.47 billion.

STOCK: The shares added $1.91, or 2.7 percent, to $72.58.

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