Loading...
•
Dec 31, 2019
Valvoline Q1 2020 Earnings Report
Valvoline's first quarter results were reported, showing growth in sales and adjusted EPS, driven by a strong contribution from Core North America and Quick Lubes.
Key Takeaways
Valvoline reported a positive first quarter with a 9% increase in sales to $607 million and a 30% increase in adjusted EPS to $0.35. The company's performance was driven by strong results in Core North America and continued growth in Quick Lubes.
Net income was reported at $73 million, with an EPS of $0.39.
Adjusted EPS increased by 30% to $0.35, and adjusted EBITDA grew by 19% to $120 million.
Sales increased by 9% to $607 million, with lubricant volume growing by 3% to 43.4 million gallons.
Quick Lubes system-wide same-store sales grew by 8.3%.
Forward Guidance
Valvoline raised its fiscal 2020 EBITDA guidance to $495 to $515 million, despite the recent increases in raw material costs.
Positive Outlook
- Profitability in Quick Lubes is expected to improve.
- Volume growth in International is expected to continue.
- Making progress on plans to strengthen and maintain the foundation of Core North America.
- Full-year Core North America EBITDA is now expected to grow modestly due to the strong Q1 results.
- Each segment is on track to meet or exceed its profitability targets combined with the strong start to the year.
Challenges Ahead
- Recently announced raw material cost increases are expected to modestly impact profitability in the second half of fiscal 2020.
- Anticipate volume softness in Core North America for the next three quarters on a year-over-year basis.
- The DIY category remains dynamic.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...