Valspar Inc., a 207-year-old U.S. paint maker, fell the most in four years after fiscal first- quarter earnings trailed analysts’ estimates and it lowered its 2013 forecast.
Valspar fell 6.6 percent to $62.50 at 12:52 p.m. in New York. The shares earlier fell as much as 9.6 percent, the biggest intraday drop since Dec. 1, 2008.
Net income in the three months through Jan. 25 fell 1.3 percent to $55 million, or 60 cents a share, from $55.8 million, or 58 cents, a year earlier, Minneapolis-based Valspar said in a statement today. Earnings were 7 cents below the average estimate of 12 analysts compiled by Bloomberg.
Profit and sales in the paint and coatings businesses trailed expectations, Jeffrey J. Zekauskas, a New York-based analyst at JP Morgan Chase & Co. who rates the shares neutral, or a hold, said in a note today.
The company lowered its 2013 earnings forecast range to $3.60 to $3.80 a share because “weak demand in certain international markets is expected to continue,” Chairman and Chief Executive Officer Gary E. Hendrickson said in the statement.
Valspar on Nov. 20 said it would earn $3.65 to $3.85 a share. The average estimate of 14 analysts compiled by Bloomberg is $3.80.
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