Valvoline (VVV) Q2 2024 Earnings
Did VVV Beat Earnings? Q2 2024 Results
Yes. Valvoline reported Q2 2024 earnings of $0.37 a share on May 8, 2024, beating the $0.35 consensus estimate by 5.7%. Revenue was $388.7M against a $390.3M estimate.
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.
- 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
“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.”
Valvoline CEO, on the earnings call
What Was Valvoline's Outlook in Q2 2024?
Valvoline narrowed its fiscal 2024 guidance: system-wide SSS growth of 6–8% (prior 6–9%); system-wide store additions unchanged; net revenues of $1.6–$1.65 billion (prior $1.6–$1.7 billion); adjusted EBITDA of $430–$455 million (prior $420–$460 million); capital expenditures unchanged; adjusted EPS of $1.45–$1.65 (prior $1.40–$1.65). The company expects strong year-over-year performance despite lapping a strong second half of fiscal 2023.
VVV YoY Financials
| Metric | Q2 2024 | Q2 2023 | Year over year |
|---|---|---|---|
| Revenue | $388.7M | $344.5M | +12.8% |
| Gross Profit | $146.2M | $126.7M | +15.4% |
| Operating Income | $76.4M | $61.2M | +24.8% |
| Net Income | $41.4M | $1.2B | −96.6% |
VVV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.