NEW YORK (TheStreet) -- Valspar (VAL) shares closed trading down by 2.79% to $83.59 on Wednesday, after the paint coatings manufacturer and supplier reported mixed second quarter earnings results earlier in the day.
The Minneapolis, MN-based company said second quarter net income was $90.3 million, or $1.11 per share, on revenue of $1.08 billion. Analysts on average were expecting the company to report earnings of $1.10 per share on revenue of $1.11 billion.
The company's paint sales fell by 15% to $403 million, due partially to a decline in demand for its North American product.
For the current year, the company reaffirmed its EPS guidance in a range between $4.45 and $4.65 per share, the mid-point of which is below analysts' consensus expectations of $4.60 per share.
Separately, the company also announced today that it is buying Quest Specialty Chemicals' performance coatings business for an undisclosed amount.
TheStreet Ratings team rates VALSPAR CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALSPAR CORP (VAL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."