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.
>To contact the writer of this article, click here: Alexandra Zendrian >To submit a news tip, send an email to: email@example.com. >To follow the writer on Twitter, go to Alexandra Zendrian.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV