Valvoline

Valvoline (VVV) Q2 2024 Earnings

Reported May 8, 2024 at 7:00 AM ET · SEC Source

Q2 24 EPS

$0.37

BEAT +5.71%

Est. $0.35

Q2 24 Revenue

$388.7M

MISS 0.40%

Est. $390.3M

vs S&P Since Q2 24

-53.7%

TRAILING MARKET

VVV -9.5% vs S&P +44.2%

Market Reaction

Did VVV Beat Earnings? Q2 2024 Results

Valvoline posted a solid second quarter for fiscal 2024, nudging past Wall Street's earnings expectations while falling just shy on revenue, as the company's pure-play automotive services transformation continued to gain traction. The Louisville-base… Read more Valvoline posted a solid second quarter for fiscal 2024, nudging past Wall Street's earnings expectations while falling just shy on revenue, as the company's pure-play automotive services transformation continued to gain traction. The Louisville-based quick-lube operator earned $0.37 per share, ahead of the $0.35 consensus by 5.71%, even as revenue of $388.70 million came in 0.40% below the $390.25 million estimate, though the top line still represented 12.8% growth year-over-year. The clearest engine behind the outperformance was margin expansion, with adjusted EBITDA climbing 21% to $105.10 million and the adjusted EBITDA margin widening to 27.0% from 25.3% a year earlier, fueled by disciplined labor management and improved service delivery across a network that added 38 net stores in the quarter to reach 1,928 system-wide locations. Valvoline also narrowed its fiscal 2024 outlook, guiding net revenues to $1.60 to $1.65 billion and adjusted EPS to $1.45 to $1.65, reflecting growing confidence in the back half even as the company works to remediate a disclosed ERP-related material weakness.

Key Takeaways

  • System-wide same-store sales growth of 7.7%
  • 13% year-over-year revenue growth from continuing operations
  • 38 net store additions in Q2 (24 company-operated and 14 franchised)
  • Adjusted EBITDA margin expansion to 27.0% from 25.3% year-over-year
  • Focus on employee training and retention improving service delivery
  • Labor cost management contributing to profit growth
24/7 Wall St

VVV YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

24/7 Wall St

VVV Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q2 26

“The second quarter saw growth of 7.7% in system-wide same-store sales, while adjusted EBITDA increased 21%. We delivered network growth of 38 net store additions this quarter, 14 of which came from our franchise partners.”

— Lori Flees, Q2 2024 Earnings Press Release