J.P. Morgan Not Surprised By Valassis Communications Q1 Results

J.P. Morgan keeps price target of $35 on shares of Valassis VCI after it reported earnings In a note to clients J.P. Morgan writes,"Valassis reported better than expected Q1 results with op. EPS of $0.57 (ex. 1x charge) vs. our $0.54, and adj. EBITDA of $74.5m vs. our $74m. Stronger Shared Mail revenue growth of 3.1% was offset by Neighborhood Targeted (specifically ROP) and FSI both down high single digits, the latter impacted by the late Easter shift into Q2. Total revenue declined 0.5%, essentially in line with flattish guidance and slightly below our estimate. Profitability improved with margins up ~100bps, reflecting SG&A cuts and, by segment, strong Shared Mail gains." Shares of VCI closed at 30.09 yesterday.