Valvoline (VVV) Tops Q1 EPS by 5c, Revenues Beat

February 3, 2021 5:04 PM EST
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Price: $26.59 -1.12%

EPS Growth %: +5.1%

Today's EPS Names:
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Valvoline (NYSE: VVV) reported Q1 EPS of $0.41, $0.05 better than the analyst estimate of $0.36. Revenue for the quarter came in at $653 million versus the consensus estimate of $627.75 million.

"Our strong results in Q1 mark a great start to the fiscal year and continue to demonstrate the resiliency and adaptability of our business," said CEO Sam Mitchell. "We delivered this impressive performance while remaining focused on the health and safety of our employees, customers and business partners.

"Profitability improved across all segments versus last year. Quick Lubes operating income growth of 13% and EBITDA growth of 21% were driven by strong top- and bottom-line performance and robust unit additions. Core North America's operating income and EBITDA were each up 2% demonstrating continued resilience in the current challenging environment. Broad-based top-line growth and margin improvement led to a 70% increase in International operating income and a 64% increase in segment EBITDA.

Mitchell continued, "We also returned $81 million in cash to shareholders in the quarter including dividends, which increased by 11%, and the completion of $58 million in share repurchases. Our dividend and share repurchases demonstrate the confidence that management and our Board have in the ongoing cash generation of the business."

GUIDANCE:

Valvoline sees FY2021 EPS of $1.57-$1.67, versus the consensus of $1.64.

The guidance provided in this press release is based on current data and expectations, and could be significantly impacted by future external events related to COVID-19, such as additional state, regional or country lockdown measures or significant changes in driving trends.

"Fiscal 2021 is off to an outstanding start with record first-quarter profitability," said Mitchell. "While COVID-19 remains a headwind to miles driven, our business continues to perform well, and we remain focused on global growth.

"We are reaffirming our full-year guidance, including low-double digit growth in adjusted EBITDA. Strong performance in Quick Lubes and International is expected to offset any short-term margin pressure from higher raw material costs.

"We expect to continue delivering durable growth and setting the pace in superior customer experience as we execute our long-term strategy of building a more service-driven business in an increasingly vibrant automotive aftermarket segment."

For earnings history and earnings-related data on Valvoline (VVV) click here.



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