Valassis Communications rises as Q3 profit doubles
Shares of Valassis Communications Inc. (Nasdaq: VCI) are rising following news before the start of trading that the provider of marketing products and services reported that its third-quarter profit more than doubled due to a recent acquisition.
Net income for the three months ended Sept. 30 was $16.4 million, or $0.34 per share, compared with a net income of $6.6 million, or $0.14 per share, during the same quarter in 2006. Six analysts polled by Thomson Financial were calling for earnings of $0.22 per share.
Revenues increased a stunning 144% to $607.2 million, from $248.9 million a year earlier. Wall Street was calling for revenues of $582 million.
“Our strong results for the quarter were driven by the success of our integration efforts of the ADVO business,” said president and CEO Alan Schultz in a statement.
Livonia, Mich.-based Valassis announced on March 2 that it has completed the purchase of direct mail media company ADVO Inc. for $1.2 million. The combination of the two companies combines Valassis’ expertise in home newspaper delivery with ADVO’s direct mail business.
The complete integration of the two companies’ sales and marketing structures will be finalized on Dec. 4.
At 3:51 p.m. ET, shares of Valassis Communications (VCI) had added $2.32, or 22%, to $12.96. The 52-week high is $19.73, set on May 3. The 52-week low of $7.67 was established on Aug. 6.
