Valhi (NYSE:VHI) Releases Earnings Results, Misses Expectations By $0.73 EPS

Key Points

• Valhi's earnings report showed a significant miss, with earnings per share of $0.03 compared to analysts' expectations of $0.76, resulting in a shortfall of $0.73.
• The company declared a quarterly dividend of $0.08 per share, with a yield of 2.1%, scheduled to be paid on September 25th.
• Valhi's stock has seen adjustments, with Barclays lowering its price target from $20.00 to $12.00 and changing its rating to "underweight".

Valhi (NYSE:VHI - Get Free Report) released its quarterly earnings results on Thursday, August 7th. The basic materials company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.76 by ($0.73), Zacks reports. Valhi had a return on equity of 7.02% and a net margin of 4.69%. The business had revenue of $540.40 million for the quarter.

Valhi Price Performance

VHI stock traded down $0.48 during mid-day trading on Thursday, hitting $16.99. The stock had a trading volume of 19,099 shares, compared to its average volume of 11,908. The firm has a market capitalization of $480.68 million, a P/E ratio of 4.95 and a beta of 1.32. The company has a current ratio of 2.83, a quick ratio of 1.35 and a debt-to-equity ratio of 0.38. The firm has a fifty day simple moving average of $16.78 and a 200 day simple moving average of $17.05. Valhi has a 52 week low of $14.10 and a 52 week high of $41.75.

Valhi Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Friday, September 5th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, September 5th. Valhi's dividend payout ratio (DPR) is currently 9.33%.

Institutional Investors Weigh In On Valhi

Several hedge funds and other institutional investors have recently made changes to their positions in VHI. Raymond James Financial Inc. bought a new stake in shares of Valhi during the 2nd quarter valued at approximately $31,000. JPMorgan Chase & Co. grew its holdings in shares of Valhi by 133.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company's stock valued at $79,000 after purchasing an additional 2,786 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Valhi by 3.6% during the 2nd quarter. Geode Capital Management LLC now owns 56,110 shares of the basic materials company's stock valued at $907,000 after purchasing an additional 1,933 shares during the last quarter. Finally, Empowered Funds LLC grew its holdings in shares of Valhi by 1.9% during the 1st quarter. Empowered Funds LLC now owns 144,202 shares of the basic materials company's stock valued at $2,343,000 after purchasing an additional 2,753 shares during the last quarter. 3.83% of the stock is owned by institutional investors.

Analyst Ratings Changes

VHI has been the topic of a number of recent research reports. Wall Street Zen raised shares of Valhi from a "hold" rating to a "buy" rating in a research report on Tuesday, May 20th. Barclays lowered their price target on shares of Valhi from $20.00 to $12.00 and set an "underweight" rating on the stock in a research report on Wednesday, May 28th.

Valhi Company Profile

Valhi, Inc engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company's Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers.