MINNEAPOLIS (AP) — Paint and coatings maker Valspar's first-quarter net income dipped 1 percent, pressured by weaker-than-expected demand in some international markets.
The Minneapolis company's performance missed Wall Street's view, and it cut its full-year earnings forecast Tuesday.
Chairman and CEO Gary Hendrickson said in a statement that Valspar expects soft demand in some of its overseas markets will continue.
Shares dropped more nearly 7 percent before the market open.
For the period ended Jan. 25, Valspar Corp. earned $55 million, or 60 cents per share. That compares with $55.8 million, or 58 cents per share, a year earlier.
Analysts predicted earnings of 67 cents per share, according to a FactSet poll.
Revenue declined 1 percent to $875.2 million from $885.6 million. Wall Street expected higher revenue of $922.8 million.
Valspar now foresees earnings between $3.60 and $3.80 per share for the year. Its prior guidance was for earnings in a range of $3.65 to $3.85 per share.
Analysts expect earnings of $3.79 per share.
The company's stock fell $4.63, or 6.9 percent, to $62.30 in premarket trading. Its shares have traded in a 52-week range of $44.50 to $68.42.