- Posted February 21, 2011
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Valassis Communications earnings climb, but fall short of expectations
LIVONIA (AP) -- Media and marketing services company Valassis Communications Inc. said last Thursday that its fourth-quarter earnings climbed 3 percent on better revenue, but the performance fell short of analysts' expectations.
The company said prices will likely move higher as economic conditions improve, which should drive mid-single-digit revenue and double-digit earnings-per-share growth in 2011 and the future.
Valassis maintained its 2011 earnings forecast below Wall Street's view.
Its stock fell $1.98, or 6 percent, to $31.09 in afternoon trading. The shares have traded between $23.70 and $38.43 over the past year.
Net income increased to $24.8 million, or 47 cents per share, compared with $24 million, or 48 cents per share, a year earlier.
This missed the 59 cents per share that analysts surveyed by FactSet predicted.
Revenue for the period ended Dec. 31 rose 4 percent to $631.2 million from $605 million, but missed Wall Street's $637.4 million.
For the year, earnings grew more than fivefold to $385.4 million, or $7.42 per share, from $66.8 million, or $1.36 per share, in the prior year.
The results included $301.4 million for a News America lawsuit settlement. Excluding the settlement and other one-time items, adjusted earnings rose to $1.90 per share from $1.36 per share.
Annual revenue climbed 4 percent to $2.33 billion from $2.24 billion.
Valassis, based in Livonia, still expects 2011 earnings of $2.76 per share, with revenue up in the mid-single digits.
Analysts predict net income of $2.89 per share on revenue of $2.45 billion.
Published: Mon, Feb 21, 2011
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