Valvoline Inc. (NYSE: VVV), a leading supplier of premium branded lubricants and automotive services, today reported financial results for its second fiscal quarter ended March 31, 2020.
Valvoline Inc. ("Valvoline") (NYSE: VVV) announced today the commencement of an offering of $300 million aggregate principal amount of 4.375% Senior Notes due 2025 (the "Notes"), as an add-on to its existing issue in such series of $400 million (the "Existing 2025 Notes"). The Notes will have the same terms as the Existing 2025 Notes, except that the Existing 2025 Notes are registered under the Securities Act of 1933, as amended (the "Securities Act"), and certain transfer restrictions, registration rights and additional interest provisions that will apply to the Notes do not apply to the Existing 2025 Notes. The Notes will be unsecured unsubordinated obligations of Valvoline. Each of Valvoline's subsidiaries that guarantees Valvoline's obligations under its existing senior secured credit facilities will guarantee the Notes on an unsubordinated unsecured basis. Valvoline intends to use all of the net proceeds from this offering to repay borrowings under its senior secured revolving credit facility.
Stock markets saw another spectacular drop yesterday, which come on the heels of the Federal Reserve interest rate cut, among other governmental actions to combat the COVID-19 panic – and it’s a clear sign that traders are not going to be easily reassured in the current crisis. With so many businesses shuttered or on part time as communities struggle with large-scale and indeterminate lockdowns and quarantines, the only certainty is that economic effects will be widespread – and the impact cannot yet be seen. In a hopeful development, President Trump, in yesterday's statement from the White House, announced that the Federal government is green-lighting clinical trials on vaccine development.We can't predict the future, but one thing is clear: the market volatility has not ended, nor is it likely to soon. Traders will have to put up with steep gains and losses – although hopefully not as severe as yesterday's 3,000-point drop in the Dow Jones average. But with these losses comes an opportunity: plenty of otherwise sound stocks will be pushed to discount prices by the general bear market, and for savvy investors, this may be the right time to buy in.So with this in mind, we extracted three intriguing stock ideas from Goldman Sachs’ basket list. As you will see, Goldman estimates big upside potential of over 70% for each of the stocks covered below. And to get an even better idea of each stock’s outlook, we use TipRanks data to understand the overall Street consensus. This makes it easy to decide whether these stocks make compelling investing propositions right now. Overall, these stocks offer investors a rare opportunity to find high growth potential alongside a discount entry price.Spirit AeroSystems Holdings (SPR)We’ll start in the aerospace industry, with a holding company whose subsidiaries are active in the design and manufacture of fuselages, wings, and propulsion for both the military and commercial aircraft sectors. A Spirit subsidiary builds the fuselage of the Boeing 737, and the company has been hurt by the ongoing grounding of the 737 MAX-8 airliners, but the parent company has its hands in enough other pots (including the Airbus A350) to remain viable.In his upgrade note on this stock, Goldman analyst Noah Poponak writes, “The MAX situation and the COVID-19 impact to Aerospace both certainly present risk to SPR. But at the current price, we believe risk/reward is now skewed substantially to the upside around those and other inputs. If the MAX and COVID-19 are resolved relatively favorably, SPR could reach $9/share in free cash in 2023 [...] To us that appears to price in many negative scenarios outside of the tail related to the MAX and COVID-19."In line with this upbeat long-term view, Poponak raised SPR to a Buy rating. His $58 price target suggests room for a 116% upside potential. (To watch Poponak’s track record, click here.)Overall, this stock’s Moderate Buy consensus rating is based on a total of 14 reviews, which include 4 Buys and 10 Holds. Shares are priced low, at $26.85, and the average price target of $68.23 implies room for 154% growth in the coming 12 months. (See Spirit AeroSystems stock analysis on TipRanks.)Amarin Corporation (AMRN)Amarin is a cutting-edge biotech with an ace up its sleeve: an approved product on the market. The company produces Vascepa, which was approved in 2012. Vascepa is based on fish oils, specifically Omega-3 fatty acids, and is marketed as a preventative treatment for hypertriglyceridemia, a cause of heart disease in adults.Amarin has reported strong sales of Vascepa, on the order of $425 million for full-year 2019 numbers. The company’s guidance for 2020 puts sales in the range $650 million to $700 million, a strong gain that will help offset predicted increases in operating expenses. AMRN’s earnings and revenues are on a positive trend, having beaten the estimates in Q4; meeting the Vascepa sales figures this year will help continue that move.Writing on the stock for Goldman, 4-star analyst Paul Choi sees Amarin achieving just that. The analyst says of the company’s prospects going forward, “Last December, Vascepa was approved for an expanded label that is larger than we had previously initially expected and now includes patients with both established cardiovascular risk and diabetes… We estimate that this is a population of nearly nine million eligible patients in the US, which compares to the three million patients previously eligible based on the initial Vascepa label… We now expect AMRN to beat consensus revenue estimates and AMRN’s guidance in 2020.”"With the recent pullback in AMRN, which has been driven by both idiosyncratic and macro factors, we now see its valuation as compelling in the midst of its ongoing launch of Vascepa in the REDUCE-IT population," the analyst concluded.As a result, Choi bumped his stance on AMRN from Neutral to Buy, and sets a $28 price target. His target indicates confidence in a powerful 173% upside potential, underscoring the great profit potential inherent it the stock. (To watch Choi’s track record, click here)All in all, Amarin has 8 Buy-side ratings given in recent weeks. These are partially balanced by 2 Holds and 1 Sell, making the analyst consensus view a Moderate Buy. AMRN shares closed yesterday at $10.26, and have a 173% upside potential based on the average price target of $28.10. (See Amarin stock analysis on TipRanks)Valvoline, Inc. (VVV)While alternative fuels and electric drives are all the rage in automotive development, the fact is that our cars still run on petroleum products. And even if they are switched to fully electric systems, they’ll still need lubricants – which are also petroleum products. Valvoline is a major producer of automotive oil and lubricants, as well as fuel additives and coolants. The company is the second largest provider of oil change services in the US, with over 1,000 locations and more than 10% market share.While oil change service may sound pedestrian, it is a necessity for any commuter – and the company’s strong position in an essential niche is reflected in its quarterly numbers. Starting fiscal year 2020, VVV reported Q1 earnings and revenues both above the forecasts. EPS, at 35 cents, beat by 20%, while the $607 million in revenues were 4.6% ahead of estimates. Both EPS and revenues also showed substantial growth year-over-year.Of the stocks in this list, only VVV offers investors a worthwhile dividend. The 11.25-cent quarterly payment annualizes to 45 cents and gives a yield of 3.2%. While modest, that yield is more than 50% greater than the average among S&P listed companies, and now that the Fed has slashed rates down below 0.25%, VVV dividend looks even better.Goldman’s Jason English, in his review of this stock, writes, “We believe VVV’s Quick Lubes can maintain a double-digit sales growth rate in the years ahead… VVV has consistently delivered high-single-digit to low-double-digit SSS growth over the past three years, placing it in the top tier among not only Auto Part Service providers, but also among all retailers.”English translates his upbeat view of VVV’s forward prospects into numbers with a $24 price target – which implies an upside of 71%. It's not surprising, then, why he upgraded the stock from Neutral to Buy last Friday. (To watch English’s track record, click here)Net net, with 2 Buy-side rating and 2 Holds, Valvoline’s analyst consensus view is a Moderate Buy. The stock’s share value is a discounted $14.01, and the average price target of $22.67 suggests that there is room here for 61% growth in the next 12 months. (See Valvoline’s stock analysis on TipRanks)
Valvoline Inc. (NYSE: VVV), a U.S.-based, leading worldwide supplier of premium branded lubricants and automotive services, today announced the launch of its "Thanks to Truckers" initiative, a campaign honoring big rig truckers, delivery carriers and waste management professionals providing essential services during the ongoing coronavirus pandemic.
Goldman Sachs' note on the American consumer staples sector featured upgrades for Kraft Heinz and Valvoline and a downgrade for Campbell Soup amid a dip in commodity prices thanks to the coronavirus. English expects Kraft Heinz' near-term sales spike to be less than that of Campbell's due to its higher dependence on perishable products, but Kraft Heinz may see more durable benefits due to lower commodity costs.
To the annoyance of some shareholders, Valvoline (NYSE:VVV) shares are down a considerable 36% in the last month. The...
Q1 2020 Valvoline Inc Earnings Call
Valvoline (VVV) delivered earnings and revenue surprises of 18.18% and -1.87%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Ladies and gentlemen, thank you for standing by, and welcome to the Valvoline, Inc. Q2 2020 earnings conference call. Valvoline released results for the quarter ended March 31, 2020, at approximately 5:00 p.m. Eastern Time, yesterday, May 6th.
Moody's Investors Service, ("Moody's") assigns Ba3 to Valvoline Inc.'s ("Valvoline") new $300 million senior unsecured notes, which are an add-on to the 4.375% senior unsecured notes due 2025. The ratings are one notch below the company's CFR rating of Ba2 reflecting the priority of the senior secured tranche of term loan debt in the capital structure.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
Valvoline Inc. ("Valvoline") (NYSE: VVV) announced today that it has priced its previously announced offering of 4.375% Senior Notes due 2025 (the "Notes"), as an add-on to its existing issue in such series of $400 million (the "Existing 2025 Notes") and upsized the offering from $300 million to $400 million aggregate principal amount. The Notes priced at 99.500% of their principal amount plus accrued and unpaid interest from February 15, 2020. The Notes will have the same terms as the Existing 2025 Notes, except that the Existing 2025 Notes are registered under the Securities Act of 1933, as amended (the "Securities Act"), and certain transfer restrictions, registration rights and additional interest provisions that will apply to the Notes do not apply to the Existing 2025 Notes. The Notes will be unsecured unsubordinated obligations of Valvoline. Each of Valvoline's subsidiaries that guarantees Valvoline's obligations under its existing senior secured credit facilities will guarantee the Notes on an unsubordinated unsecured basis. Valvoline intends to use all of the net proceeds from this offering to repay borrowings under its senior secured revolving credit facility. The offering is expected to close on May 22, 2020, subject to customary closing conditions.
Valvoline Inc. – a leading worldwide supplier of premium branded lubricants and automotive services – announced today its franchisee, A.D. Kenwood Company, has acquired a quick-lube location that is now operating as a Valvoline Instant Oil ChangeSM (VIOC) service center in Portage, Indiana.
Valvoline Inc. (NYSE:VVV) stock is about to trade ex-dividend in 2 days time. Investors can purchase shares before the...
Valvoline Inc. (NYSE: VVV), a U.S.-based, leading worldwide supplier of premium branded lubricants and automotive services, today announced the expansion of its international footprint through the launch of its inaugural Valvoline Mechanics' Month. This 30-day activation will honor mechanics throughout multiple non-U.S. countries in which Valvoline has a presence. This represents the first observance of its kind, expanding upon previous regional efforts.
Valvoline Inc. (NYSE: VVV), a leading worldwide supplier of premium branded lubricants and automotive services, today announced the date and time of its fiscal second-quarter 2020 earnings release and provided an update on the impacts of the novel coronavirus (COVID-19) pandemic.
Veritiv added a long-time executive in the manufacturing sector — and Atlanta resident — to its board of directors.
Moody's Investors Service, ("Moody's") assigns Ba3 to Valvoline Inc.'s new senior unsecured $500 million notes due 2030. The ratings are one notch below the company's CFR rating of Ba2 reflecting the priority of the senior secured tranche of term loan debt in the capital structure. "The financing is a logical step at this point in the credit cycle as it reduces the company's interest expense and cost of debt capital while pushing out the maturity profile," according to Joseph Princiotta, SVP at Moody's. "However, the new notes will increase adjusted gross leverage slightly to 3.9x on a pro forma basis -- we expect leverage to trend back to the mid 3.0x range to better support the current ratings and outlook" Princiotta added.
Valvoline Inc. (NYSE: VVV) today announced that its board of directors declared a quarterly cash dividend of $0.113 per share of Valvoline common stock. The dividend is payable on June 15, 2020, to shareholders of record as of the close of business on May 29, 2020.
Valvoline Inc. (NYSE: VVV), a leading worldwide supplier of premium branded lubricants and automotive services, today provided an update on the impacts of and its responses to the novel coronavirus (COVID-19) pandemic.