Valassis 1Q disappoints, annual profit view weak

LIVONIA (AP) -- Advertising services company Valassis Communications Inc. said last Thursday that its first-quarter net income rose 23 percent despite a revenue decline, mainly because it didn't repeat a debt-related loss from a year ago. But the results fell short of expectations and shares fell sharply. Net income in the three months to March 31 rose to $26.4 million, or 60 cents per share, from $21.4 million, or 41 cents per share, a year ago. There were no adjustments to earnings. The 60 cents per share in earnings came in below the 67 cents per share expected by analysts polled by FactSet. Revenue fell 5 percent to $518.6 million from $547.0 million. That was below the $531.2 million expected by analysts. CEO Rob Mason said in a statement the company continued to suffer from a pullback in consumer packaged goods advertising spending. The company reiterated its full-year guidance for earnings of $3.07 per share. Analysts had been looking for $3.11 per share. Published: Mon, Apr 30, 2012