The coating and paint company reported last month first-quarter earnings of $55.8 million, or 60 cents a share, up from year-earlier earnings of $33.4 million, or 35 cents a share."In a challenging demand environment, Valspar Corporation (VAL-NYSE) managed to produce strong results in its fiscal 1Q12 with EPS of $0.62 vs. $0.39 a year ago," KeyBanc Capital Markets analysts wrote in a Feb. 17 report. "Moving forward, we do expect some businesses to remain less than robust in terms of volume, specifically the U.S. DIY market, the Australian architectural market, and packaging coatings in Europe and North America. However, the Company should keep on benefiting from new business wins, strength in its coil, general industrial and powder coatings businesses and growth in the Asian and South American markets. We also expect total profitability to improve further moving into the seasonally stronger fiscal 2Q12 and 3Q12 due to the operating leverage, pricing actions and benefits from restructuring despite raw materials beginning to move upward once again. We are raising our full-year FY12 and FY13 EPS estimates to $3.10 (was $3.05) and $3.50 (was $3.35) accordingly. Our general bias toward VAL is positive, but our rating remains HOLD based on valuation." Forward Annual Dividend Yield: 1.6% Rated "B+ (Buy)" by TheStreet Ratings: The company's first-quarter gross profit margin was about the same as it was a year ago. Valspar has weak liquidity. Its Quick Ratio is 0.95, which demonstrates a lack of ability to meet its short-term cash needs. In the first quarter, stockholders' net worth decreased 22.69% from the prior year. TheStreet Ratings' price target is $55.58. The stock closed Tuesday at $49.37 and has risen 26.69% year to date.
Wolverine Worldwide The apparel company reported on Jan. 30 fourth-quarter earnings of $23 million, or 47 cents a share, down from year-earlier earnings of $25.6 million, or 52 cents a share. "4Q earnings outperformance in a weak demand environment highlights the strength of the Wolverine business model, which is marked by a broad brand portfolio that offers downside protection, a pricing strategy that limits discounting and allows for margin protection, and strong control of SG&A expense," Credit Suisse analysts wrote in a Jan. 30 report. "Near-term demand headwinds and subsequent deleverage are going to hold back earnings growth to 2H, though, suggesting that some patience is in order for longer-term investors." Forward Annual Dividend Yield: 1.2% Rated "A- (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin is about the same as it was a year ago. Wolverine Worldwide is extremely liquid. Its Quick Ratio is 2.42, which shows the company can meet its short-term cash needs. In the fourth quarter, stockholders' net worth increased 6.38% from the prior year. TheStreet Ratings' price target is $45.65. The stock closed Tuesday at $39.95 and has risen 12.09% year to date.
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