Valhi (NYSE:VHI) Posts Earnings Results, Misses Expectations By $0.70 EPS

Key Points

• Valhi missed earnings expectations, reporting EPS of $0.07 versus analyst estimates of $0.77, a shortfall of $0.70 per share.
• The company also came in slightly below revenue forecasts, posting $560.1 million in revenue versus the expected $564.2 million.
• Despite the earnings miss, Valhi shares rose 2.3% to $14.62, while the stock continues to carry a Sell consensus rating with a $12.00 price target.

Valhi (NYSE:VHI - Get Free Report) released its quarterly earnings results on Thursday. The basic materials company reported $0.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.77 by ($0.70), FiscalAI reports. Valhi had a negative net margin of 3.45% and a negative return on equity of 4.27%. The firm had revenue of $560.10 million for the quarter, compared to analyst estimates of $564.20 million.

Valhi Stock Up 2.3%

Valhi stock traded up $0.34 during trading hours on Friday, hitting $14.62. The company had a trading volume of 17,649 shares, compared to its average volume of 13,943. The firm has a market capitalization of $413.60 million, a P/E ratio of -5.75 and a beta of 0.99. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.80 and a quick ratio of 1.33. The firm's fifty day moving average is $14.07 and its 200-day moving average is $13.72. Valhi has a fifty-two week low of $11.44 and a fifty-two week high of $20.00.

Valhi Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 2.2%. The ex-dividend date was Monday, March 16th. Valhi's dividend payout ratio is currently -12.60%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on VHI. Weiss Ratings restated a "sell (d)" rating on shares of Valhi in a report on Friday, April 10th. Wall Street Zen upgraded shares of Valhi from a "sell" rating to a "hold" rating in a research note on Saturday, March 14th. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat, Valhi currently has an average rating of "Sell" and a consensus price target of $12.00.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Millennium Management LLC acquired a new position in shares of Valhi during the 4th quarter worth $201,000. Wells Fargo & Company MN increased its stake in shares of 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 purchasing an additional 859 shares during the last quarter. Jane Street Group LLC acquired a new position in shares of Valhi during the 4th quarter worth $183,000. Deutsche Bank AG increased its stake in shares of Valhi by 145.0% during the 4th quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock worth $84,000 after purchasing an additional 4,146 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new position in shares of Valhi during the 4th quarter worth $80,000. Institutional investors and hedge funds own 3.83% of the company's stock.

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.

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