Univar Solutions Inc. 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. The company repurchased shares worth $81 million during the 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.
Price Performance
Univar’s shares have gained 7% over a year against 10.8% decline of the industry.
Zacks Rank & Other Key Picks
Univar currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and ATI Inc. (ATI - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 38% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 99% in a year. The company sports a Zacks Rank #1.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 37% in a year.
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Univar Solutions Inc. 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. The company repurchased shares worth $81 million during the 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.
Price Performance
Univar’s shares have gained 7% over a year against 10.8% decline of the industry.
Zacks Rank & Other Key Picks
Univar currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and ATI Inc. (ATI - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 38% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 99% in a year. The company sports a Zacks Rank #1.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 37% in a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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