A Look Ahead: Valvoline's Earnings Forecast

Valvoline VVV will release its quarterly earnings report on Tuesday, 2024-11-19. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Valvoline to report an earnings per share (EPS) of $0.42.

Valvoline bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

Last quarter the company missed EPS by $0.02, which was followed by a 2.9% increase in the share price the next day.

Here's a look at Valvoline's past performance and the resulting price change:

Tracking Valvoline's Stock Performance

Shares of Valvoline were trading at $42.32 as of November 14. Over the last 52-week period, shares are up 22.14%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Valvoline

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Valvoline.

Valvoline has received a total of 1 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $49.0, the consensus suggests a potential 15.78% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Group 1 Automotive, Asbury Automotive Gr and AutoNation, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• For Group 1 Automotive, analysts project an Outperform trajectory, with an average 1-year price target of $417.25, indicating a potential 885.94% upside.
• Asbury Automotive Gr is maintaining an Neutral status according to analysts, with an average 1-year price target of $257.67, indicating a potential 508.86% upside.
• The consensus among analysts is an Neutral trajectory for AutoNation, with an average 1-year price target of $196.0, indicating a potential 363.14% upside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Group 1 Automotive, Asbury Automotive Gr and AutoNation, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Valvoline ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

All You Need to Know About Valvoline

Valvoline Inc produces, markets, and sells automotive maintenance products, particularly lubricants, to retail outlets installers, and customers. The company offers various products such as engine oil, heavy-duty engine oil, motorcycle oil, grease and brake fluid, and others. Geographically, the majority of the revenue is generated from the United States of America.

Valvoline: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Valvoline displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 12.01%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Valvoline's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.89%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 55.1%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Valvoline's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.79%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 13.33, Valvoline faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Valvoline visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.