Valvoline Q1 profit beats estimates

Reuters02-04
Valvoline Q1 profit beats estimates

Overview

  • Automotive maintenance firm's Q1 revenue grew 11% yr/yr

  • Adjusted EPS for Q1 beat analyst expectations

  • Company reported loss from continuing operations due to FTC-required divestiture

Outlook

  • Company confident in growth algorithm due to strong fundamentals and resilient demand

  • Valvoline focuses on network expansion and Breeze integration for future growth

Result Drivers

  • STORE EXPANSION - Added 200 stores, including 162 from Breeze acquisition, contributing to revenue growth

  • SAME-STORE SALES GROWTH - System-wide same-store sales grew 5.8%, aiding profit and margin improvements

  • DIVESTITURE IMPACT - Loss from continuing operations due to FTC-required divestiture of Breeze stores

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

$462 mln

Q1 Adjusted EPS

Beat

$0.37

$0.33 (14 Analysts)

Q1 EPS

-$0.25

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the personal services peer group is "buy"

  • Wall Street's median 12-month price target for Valvoline Inc is $39.61, about 19% above its February 3 closing price of $33.29

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw89KyDya

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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