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Univar's (UNVR) Earnings Trail, Sales Beat Estimates in Q2
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Univar Inc. logged a profit (on a reported basis) of $56.1 million or 40 cents per share in second-quarter 2018, compared with net income of $31.3 million or 22 cents a year ago.
Barring one-time items, earnings came in at 47 cents per share in the quarter, missing the Zacks Consensus Estimate by a penny.
The chemical maker’s revenues rose 5.6% year over year to $2,372.6 million in the quarter, beating the Zacks Consensus Estimate of $2,343 million.
Gross profit rose around 7.3% year over year to $500.5 million in the quarter. Adjusted EBITDA margin expanded 20 basis points to 7.3%.
Revenues at the USA division increased 10% year over year to $1.3 billion in the reported quarter. Gross profit rose 5.5% year over year to $290.8 million.
Revenues at the Canada segment declined around 8.4% year over year to $450.9 million. Gross profit rose 2.1% year over year to $68.9 million in the quarter.
The EMEA segment raked in sales of $511.9 million, up 10.4% year over year. Gross profit rose around 12.9% year over year to $118.2 million.
Sales from the Rest of World unit inched up 0.2% to $100 million. Gross profit grew 22.2% year over year to $22.6 million.
Balance Sheet
Univar ended the quarter with cash and cash equivalents of $128.6 million, down around 60% year over year. Long-term debt totaled $2,590.1 million, down around 10.5% year over year.
Outlook
For 2018, Univar continues to expect adjusted EBITDA growth of low-double digits. Adjusted earnings per share for the year are projected in the range of $1.65-$1.85.
Moreover, the company expects low double-digit growth in adjusted EBITDA for the third quarter.
Price Performance
Univar has underperformed the industry over the past six months. The company’s shares have lost 6.2% over this period against the industry’s 0.8% rise.
Zacks Rank & Stocks to Consider
Univar carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , BHP Billiton Limited (BHP - Free Report) and Steel Dynamics Inc. (STLD - Free Report) .
BHP Billiton has an expected long-term earnings growth rate of 5.3%, carrying a Zacks Rank #1. Its shares have rallied roughly 26% in a year’s time.
Steel Dynamics has an expected long-term earnings growth rate of 12% and has a Zacks Rank #2 (Buy). The stock has rallied 31.2% in the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Univar's (UNVR) Earnings Trail, Sales Beat Estimates in Q2
Univar Inc. logged a profit (on a reported basis) of $56.1 million or 40 cents per share in second-quarter 2018, compared with net income of $31.3 million or 22 cents a year ago.
Barring one-time items, earnings came in at 47 cents per share in the quarter, missing the Zacks Consensus Estimate by a penny.
The chemical maker’s revenues rose 5.6% year over year to $2,372.6 million in the quarter, beating the Zacks Consensus Estimate of $2,343 million.
Gross profit rose around 7.3% year over year to $500.5 million in the quarter. Adjusted EBITDA margin expanded 20 basis points to 7.3%.
Univar Inc. Price, Consensus and EPS Surprise
Univar Inc. Price, Consensus and EPS Surprise | Univar Inc. Quote
Segment Review
Revenues at the USA division increased 10% year over year to $1.3 billion in the reported quarter. Gross profit rose 5.5% year over year to $290.8 million.
Revenues at the Canada segment declined around 8.4% year over year to $450.9 million. Gross profit rose 2.1% year over year to $68.9 million in the quarter.
The EMEA segment raked in sales of $511.9 million, up 10.4% year over year. Gross profit rose around 12.9% year over year to $118.2 million.
Sales from the Rest of World unit inched up 0.2% to $100 million. Gross profit grew 22.2% year over year to $22.6 million.
Balance Sheet
Univar ended the quarter with cash and cash equivalents of $128.6 million, down around 60% year over year. Long-term debt totaled $2,590.1 million, down around 10.5% year over year.
Outlook
For 2018, Univar continues to expect adjusted EBITDA growth of low-double digits. Adjusted earnings per share for the year are projected in the range of $1.65-$1.85.
Moreover, the company expects low double-digit growth in adjusted EBITDA for the third quarter.
Price Performance
Univar has underperformed the industry over the past six months. The company’s shares have lost 6.2% over this period against the industry’s 0.8% rise.
Zacks Rank & Stocks to Consider
Univar carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , BHP Billiton Limited (BHP - Free Report) and Steel Dynamics Inc. (STLD - Free Report) .
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 21.1% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP Billiton has an expected long-term earnings growth rate of 5.3%, carrying a Zacks Rank #1. Its shares have rallied roughly 26% in a year’s time.
Steel Dynamics has an expected long-term earnings growth rate of 12% and has a Zacks Rank #2 (Buy). The stock has rallied 31.2% in the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>