NEW YORK (AP) - Valassis Communications Inc.'s stock surged Wednesday as investors welcomed news that the producer of newspaper ad inserts anticipates topping Wall Street's first-quarter earnings expectations.
Late Tuesday Valassis forecast a quarterly profit between 22 cents and 28 cents per share, which excludes charges and costs such as interest and taxes. The company predicted first-quarter revenue of about $600 million.
Analysts surveyed by Thomson Financial forecast first-quarter net income of 20 cents per share on sales of $586 million. Analysts' estimates typically exclude one-time items.
Mark Bacurin of Robert W. Baird & Co. continues to like Valassis' stock, saying integrated sales will support improved sales growth for the rest of the year.
The closing of a $160 million delayed draw term loan is also a positive for the company, as it takes away near-term liquidity concerns, the analyst added in a note to clients.
Shares of Livonia, Mich.-based Valassis Communications climbed 51 cents, or 3.9 percent, to $13.55 in afternoon trading. The stock has traded in a range of $7.67 to $19.73 over the past 52 weeks.

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