Valvoline's (VVV) Q1 Earnings Match, Revenues Miss Estimates
Valvoline Inc. VVV reported adjusted income from continuing operations of $38.5 million or 29 cents per share in first-quarter fiscal 2024 (ended Dec 31, 2023) compared with the year-ago quarter's adjusted income of $28.4 million or 16 cents. The earnings per share (EPS) matched the Zacks Consensus Estimate of 29 cents.
Revenues
Net sales increased nearly 12% year over year to $373.4 million in the quarter. The metric lagged the Zacks Consensus Estimate of $376 million. In the first quarter, system-wide same-store sales (SSS) increased by 7.1%.
Valvoline Price, Consensus and EPS Surprise
Valvoline price-consensus-eps-surprise-chart | Valvoline Quote
Financials
At the end of the quarter, Valvoline had cash and cash equivalents of $420.7 million, up from $21 million a year ago. The long-term debt was $1,556.8 million, down 6% year over year.
Net cash provided by operating activities from continuing operations was $22 million and free cash flow was a negative $20.4 million in the quarter.
In the first quarter, $170 million was returned to shareholders through share repurchases, leaving $40 million available on the existing share repurchase authorization at the end of the quarter.
Outlook
During the first quarter, the company met anticipated profitability levels. It remains aligned with its annual objectives, progressing steadily across key areas — maximizing existing business potential, fostering network expansion and enhancing services to cater to evolving customer demands and market trends.
Price Performance
Valvoline’s shares have increased 7% in the past year compared with a 14% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Valvoline currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation CCJ and Carpenter Technology Corporation CRS, both sporting a Zacks Rank #1 (Strong Buy), and Cleveland-Cliffs Inc. CLF, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 74.4% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 21.7% in the past year.
The consensus estimate for CLF’s current fiscal year earnings is pegged at $2.27, indicating a year-over-year rise of 112%. The Zacks Consensus Estimate for CLF’s current-year earnings has been revised upward by 4.6% in the past 60 days. CLF beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 24.7%.
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