Valassis 2Q down on charges but 2012 view strong

LIVONIA, Mich. (AP) ? Shares of Valassis Communications Inc. jumped 10 percent Thursday after the advertising services company reported net income fell 28 percent because of restructuring costs, but offered an annual earnings projection above expectations.

CEO Rob Mason said that during the quarter the company invested in its digital media arm by buying Brand.net and exited its solo direct mail and newspaper sampling business to focus on its core businesses.

Valassis is shifting its traditional business of coupons distributed as newspaper inserts toward an increasing focus on digital coupons and other marketing as more people turn online for coupons.

Net income fell to $21.7 million or 51 cents per share. That compares with $30.3 million, or 60 cents per share last year. Excluding restructuring charges, net income totaled 76 cents per share, a penny short of analyst expectations of 77 cents per share, according to FactSet.

Revenue fell 4 percent to $540.2 million from $565.3 million a year ago. Analysts expected revenue of $546.9 million.

Valassis said it now expects net income of $2.86 for the year, excluding restructuring and other costs. That's below its prior $3.07 forecast, but still above analyst expectations for $2.74 per share.

The stock had been up 3 percent since the beginning of the year. On Thursday shares rose $2.01, or 10.2 percent, to close at $21.75.

Source: http://news.yahoo.com/valassis-2q-down-charges-2012-view-strong-212441457--finance.html

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