Valhi (NYSE:VHI) Posts Earnings Results, Misses Estimates By $2.72 EPS

Key Points

• EPS miss: Valhi reported quarterly EPS of ($1.86) versus a consensus $0.86, missing by $2.72 on revenue of $494.5 million, with a net margin of 0.89% and ROE of 2.22%.
• Dividend announced: The company declared a quarterly dividend of $0.08 per share (annualized $0.32), a 2.3% yield and a 50% payout ratio, payable March 31 with record date March 16.
• Market and analyst reaction: shares rose about 3% to $13.68 despite the miss, while the consensus analyst rating remains Sell with a $12.00 target.

Valhi (NYSE:VHI - Get Free Report) issued its quarterly earnings results on Tuesday. The basic materials company reported ($1.86) EPS for the quarter, missing the consensus estimate of $0.86 by ($2.72), FiscalAI reports. Valhi had a net margin of 0.89% and a return on equity of 2.22%. The firm had revenue of $494.50 million for the quarter.

Valhi Stock Up 3.0%

Shares of VHI stock traded up $0.40 on Tuesday, hitting $13.68. The stock had a trading volume of 35,398 shares, compared to its average volume of 26,072. The company has a quick ratio of 1.76, a current ratio of 3.64 and a debt-to-equity ratio of 0.47. The business has a 50 day moving average price of $14.13 and a 200 day moving average price of $14.23. The company has a market cap of $387.14 million, a PE ratio of 21.38 and a beta of 1.19. Valhi has a one year low of $11.44 and a one year high of $20.00.

Valhi Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be paid a dividend of $0.08 per share. The ex-dividend date is Monday, March 16th. This represents a $0.32 annualized dividend and a dividend yield of 2.3%. Valhi's dividend payout ratio (DPR) is currently 50.00%.

Hedge Funds Weigh In On Valhi

A number of large investors have recently bought and sold shares of VHI. Raymond James Financial Inc. purchased a new stake in shares of Valhi during the second quarter valued at $31,000. Wells Fargo & Company MN lifted its position in Valhi by 46.1% during the 4th quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company's stock worth $33,000 after acquiring an additional 859 shares during the period. JPMorgan Chase & Co. grew its stake in 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. Los Angeles Capital Management LLC purchased a new stake in Valhi during the 4th quarter valued at about $80,000. Finally, Deutsche Bank AG increased its holdings in shares of Valhi by 145.0% in the fourth quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock valued at $84,000 after purchasing an additional 4,146 shares during the period. Institutional investors own 3.83% of the company's stock.

Analyst Ratings Changes

VHI has been the subject of several analyst reports. Weiss Ratings reissued a "sell (d+)" rating on shares of Valhi in a research note on Monday, December 29th. Wall Street Zen upgraded Valhi to a "sell" rating in a report on Saturday, January 17th. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company has an average rating of "Sell" and a consensus target price of $12.00.

About Valhi

Valhi, Inc is a diversified holding company incorporated in Delaware in 1987 and headquartered in Dallas, Texas. Through its three wholly owned subsidiaries—Kronos Worldwide, CompX International and NL Industries—Valhi participates in the manufacture and distribution of chemical and security products for industrial, commercial and consumer markets.

Kronos Worldwide is a leading independent producer of titanium dioxide pigment, a white powder that enhances brightness and opacity in paints, coatings, plastics, paper and other applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.