A month has gone by since the last earnings report for Univar (UNVR). Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Univar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Univar's Earnings and Revenues Surpass Estimates in Q1
Univar reported profits of $83.1 million or 52 cents per share in the first quarter of 2023, down from $180.8 million or $1.06 per share in the year-ago quarter.
Adjusted earnings in the reported quarter were 63 cents per share, down from $1.07 in the year-ago quarter. It beat the Zacks Consensus Estimate of 62 cents.
The company’s revenues were $2,684.9 million in the quarter, down around 7% year over year. The top line surpassed the Zacks Consensus Estimate of $2,491.8 million. The downside in sales can be attributed to lower demand, partly offset by the company’s pricing discipline.
Revenues from the USA division fell around 6% year over year to $1,729.2 million in the quarter.
The EMEA segment reported $514.1 million in revenues, down roughly 9% year over year.
Revenues from the Canada segment went down around 7% year over year to $274.2 million.
Revenues from the LATAM unit fell around 9% to $167.4 million.
Univar ended the quarter with cash and cash equivalents of $377.7 million, up around 54% year over year. Long-term debt was $2,490.4 million, up around 3% year over year.
Net cash used by operating activities fell to $2.9 million in the reported quarter from $134.4 million in the year-ago quarter.
Univar has not provided updated guidance due to the pending merger transaction. The company noted that it remains focused on delivering its business strategy and leveraging its global strengths in ingredients and specialties.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Currently, Univar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Univar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Univar belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Eastman Chemical (EMN), has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Eastman Chemical reported revenues of $2.41 billion in the last reported quarter, representing a year-over-year change of -11.1%. EPS of $1.63 for the same period compares with $2.06 a year ago.
For the current quarter, Eastman Chemical is expected to post earnings of $2.07 per share, indicating a change of -26.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Eastman Chemical. Also, the stock has a VGM Score of B.
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