Valvoline Inc.'s stock surged 5.06% during intraday trading on Wednesday, following the release of its first-quarter financial results that exceeded analyst expectations.
The automotive maintenance company reported adjusted earnings per share of $0.37 for the fiscal first quarter, beating the FactSet consensus estimate of $0.33. Net revenue reached $461.8 million, showing an 11% year-over-year increase and coming in slightly above analyst expectations of $461.6 million.
The strong performance was driven by multiple factors including system-wide same-store sales growth of 5.8% and network expansion that added 200 stores, including 162 from the Breeze acquisition. While the company reported a loss from continuing operations due to an FTC-required divestiture related to the Breeze acquisition, the underlying business fundamentals showed resilience with improved margins and strong demand.
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