- Valvoline Inc (NYSE:VVV) reported second-quarter FY23 sales growth of 16% year-on-year to $344.50 million, marginally beating the analyst consensus of $344.36 million.
- The automotive services provider registered an adjusted EPS of $0.23, missing the analyst consensus of $0.28.
- System-wide SSS increased 13.5% Y/Y.
- Gross profit climbed 18.1% to $126.7 million, with a profit margin of 36.8%.
- Operating income for the quarter jumped 53% to $61.2 million, with a margin of 17.8%.
- At quarter end, Cash and cash equivalents balance was $2.3 billion, with $8.3 million of interest income earned on net proceeds from the sale of Global Products.
- “As we approach the summer travel season, our stores are well staffed and prepared to continue driving growth in the back half of the year,” said CEO Sam Mitchell.
- Outlook: Valvoline reiterated its FY23 outlook. Valvoline sees FY23 System-wide SSS growth of 8% – 12%.
- The company expects FY23 revenue of $1.4 billion – $1.5 billion (consensus at $1.43 billion) and adjusted EBITDA of $370 million – $390 million.
- Price Action: VVV shares are trading higher by 12.5% at $38.57 on the last check Wednesday.
Now Read: Disney Q2 Earnings Preview: Analyst Estimates, Disney+ Versus Rivals, Dividend Talk, DeSantis Battle And More
Photo: Shutterstock
