Valvoline (VVV) Surpasses Q3 Earnings and Revenue Estimates

Core Viewpoint - Valvoline reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.45 per share a year ago, indicating a positive earnings surprise of +2.17% [1] Financial Performance - The company achieved revenues of $439 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.77% and up from $421.4 million year-over-year [2] - Over the last four quarters, Valvoline has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - Valvoline shares have increased by approximately 0.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.1% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.49 for the upcoming quarter and $1.65 for the current fiscal year [7] Industry Context - The Automotive - Retail and Wholesale - Parts industry, to which Valvoline belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the current unfavorable estimate revisions trend could lead to underperformance [5][6]