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Why Is Univar (UNVR) Up 0.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Univar . Shares have added about 0.7% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Univar's Earnings and Revenues Top Estimates in Q2
Univar recorded profits of $162.9 million or 96 cents per share in second-quarter 2022, up from $153.2 million or 90 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were $1.00, up from 57 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 90 cents.
The company’s revenues were $3,016.6 million in the quarter, up 26% year over year. The top line surpassed the Zacks Consensus Estimate by 2.79%. The upside in sales can be attributed to the company’s pricing discipline to counter inflation and market share gains.
Segment Review
Revenues from the USA division rose around 31% year over year to $1,970.2 million in the quarter. The upside was primarily driven by pricing discipline and market share gains.
The EMEA segment raked in revenues of $547.2 million, up roughly 27% year over year, supported by pricing discipline in inflationary markets and market share gains.
Revenues from the Canada segment went up around 30% year over year to $298.2 million. The upside was led by pricing discipline and market share gains.
Revenues from the LATAM unit rose roughly 30% to $201 million, driven mainly by pricing discipline and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $234.8 million, up around 13% year over year. Long-term debt was $2,484.2 million, up around 12% year over year.
Net cash provided by operating activities fell to $48.2 million in the reported quarter from $83.7 million in the prior-year quarter.
Outlook
The company expects adjusted EBITDA for third-quarter 2022 to be $240-$260 million. For 2022, adjusted EBITDA is now forecast in the band of $1,040-$1,080 million, up from $1,000-$1,050 million expected earlier. The guidance reflects strong operational execution, market share growth and cost management. The company also sees net free cash flow for 2022 in the range of $400-$450 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 11.11% due to these changes.
VGM Scores
Currently, Univar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Univar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Univar is part of the Zacks Chemical - Diversified industry. Over the past month, Methanex (MEOH - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2022 more than a month ago.
Methanex reported revenues of $1.14 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $1.16 for the same period compares with $1.24 a year ago.
For the current quarter, Methanex is expected to post earnings of $1.15 per share, indicating a change of -10.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -12.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Methanex. Also, the stock has a VGM Score of A.
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Why Is Univar (UNVR) Up 0.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Univar . Shares have added about 0.7% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Univar's Earnings and Revenues Top Estimates in Q2
Univar recorded profits of $162.9 million or 96 cents per share in second-quarter 2022, up from $153.2 million or 90 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were $1.00, up from 57 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 90 cents.
The company’s revenues were $3,016.6 million in the quarter, up 26% year over year. The top line surpassed the Zacks Consensus Estimate by 2.79%. The upside in sales can be attributed to the company’s pricing discipline to counter inflation and market share gains.
Segment Review
Revenues from the USA division rose around 31% year over year to $1,970.2 million in the quarter. The upside was primarily driven by pricing discipline and market share gains.
The EMEA segment raked in revenues of $547.2 million, up roughly 27% year over year, supported by pricing discipline in inflationary markets and market share gains.
Revenues from the Canada segment went up around 30% year over year to $298.2 million. The upside was led by pricing discipline and market share gains.
Revenues from the LATAM unit rose roughly 30% to $201 million, driven mainly by pricing discipline and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $234.8 million, up around 13% year over year. Long-term debt was $2,484.2 million, up around 12% year over year.
Net cash provided by operating activities fell to $48.2 million in the reported quarter from $83.7 million in the prior-year quarter.
Outlook
The company expects adjusted EBITDA for third-quarter 2022 to be $240-$260 million. For 2022, adjusted EBITDA is now forecast in the band of $1,040-$1,080 million, up from $1,000-$1,050 million expected earlier. The guidance reflects strong operational execution, market share growth and cost management. The company also sees net free cash flow for 2022 in the range of $400-$450 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 11.11% due to these changes.
VGM Scores
Currently, Univar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Univar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Univar is part of the Zacks Chemical - Diversified industry. Over the past month, Methanex (MEOH - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2022 more than a month ago.
Methanex reported revenues of $1.14 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $1.16 for the same period compares with $1.24 a year ago.
For the current quarter, Methanex is expected to post earnings of $1.15 per share, indicating a change of -10.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -12.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Methanex. Also, the stock has a VGM Score of A.