Overview

• Automotive maintenance firm's Q1 revenue grew 11% yr/yr

• Adjusted EPS for Q1 beat analyst expectations

• Company reported loss from continuing operations due to FTC-required divestiture

Outlook

• Company confident in growth algorithm due to strong fundamentals and resilient demand

• Valvoline focuses on network expansion and Breeze integration for future growth

Result Drivers

• STORE EXPANSION - Added 200 stores, including 162 from Breeze acquisition, contributing to revenue growth

• SAME-STORE SALES GROWTH - System-wide same-store sales grew 5.8%, aiding profit and margin improvements

• DIVESTITURE IMPACT - Loss from continuing operations due to FTC-required divestiture of Breeze stores

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for Valvoline Inc is $39.61, about 19% above its February 3 closing price of $33.29

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw89KyDya

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