Valassis Communications issues 2008 guidance
Shares of Valassis Communications (NYSE: VCI) are rising on news before the start of trading that the provider of marketing services expects revenue to grow in 2008.
Livonia, Mich.-based Valassis reported that it projects earnings of between $53.5 million and $65.9 million, or adjusted earnings of between $2.14 per share and $2.39 per share, for fiscal 2008. Revenue growth is projected in the single digits and expected to come in the second half the year.
“We expect to continue driving cost synergies and optimization in the first half of 2008,” CEO Alan Schultz said in a statement. “In the second half of 2008, we will transition our focus to revenue synergies.”
Fiscal 2008 will be the first year since Valassis’ $1.2 billion acquisition of direct mail media company ADVO Inc. The transaction was finalized on March 2, and the ADVO name will be retired at the end of the year.
“The ADVO, Inc. integration cost synergies have exceeded our 2007 targets and our shared mail optimization efforts have improved margins,” Schultz said.
Valassis previously announced that it will continue working with the U.S. Postal Service and the National Center for Missing and Exploited Children to help locate missing children through the mass distribution of pictures. The partnership was started by ADVO in 1985 and has since helped recover 147 missing children.
At 1:13 p.m. ET, shares of Valassis Communications (VCI) had climbed $0.82, or 7%, to $12.48. The 52-week high of $19.73 was reached on May 3, while the 52-week low of $7.67 was set on Aug. 6.
