Valassis Communications (NYSE:VCI) reported Thursday weaker-than expected second quarter earnings despite a sharp increase in revenue, driven mostly by a hike in demand in all of its business segments.
The marketing services company reported net earnings of $11.1 million, or 21 cents a share, down 30% from $15.9 million, or 33 cents a share, a year ago, and falling short of average analyst estimates of 43 cents.
Revenues for the Michigan-based company were $580 million, an increase of 6.6% from $544 million in the prior year quarter, and beating the Street’s view of $555.1 million.
“Revenue growth across all four of our business segments this quarter was driven by strong consumer demand for value and our clients' need to respond to this demand,” said Valassis CEO Alan F. Schultz.
Given the positive results the company chose to raise its full-year outlook to the range of $2.79 to $3.14.
"Our decision to raise guidance is reflective of our outlook on client spending on our media, and we believe we are well positioned to continue delivering mid-single digit revenue growth,” Schultz said.