Univar Solutions Inc. ( UNVR Quick Quote UNVR - Free Report) recently announced an agreement to serve as Solvay's distribution partner for the agrochemical market in Brazil. This is the first time that Solvay has named a distributor for this particular market in the country. Per the agreement, Solvay's product line for agrochemical defensives, adjuvants and fertilizers will cater to the fast growing Brazilian agricultural sector. Univar will provide technical and logistical support and various chemical solutions across the country. Now, the company also has access to a broader range of products for Brazilian customers that enables more sustainable agriculture practices and working with newer technologies such as bio-pesticides and adjuvants. Univar noted that the partnership positions it well to meet the needs of customers of high-performing and sustainable products by ensuring increased crop protection, enhanced nutrition and innovation in grain and seed care. This agreement stands as a testimony to its dedication toward bringing in more sustainable, customer-centric solutions. Solvay stated that the alliance with Univar will enhance its services and customers will come to trust its formulation expertise, global manufacturing footprint and outstanding research and innovation capabilities. Shares of Univar have appreciated 26% in a year compared with the industry’s rise of 27.4%. The estimated earnings growth rate for the company for the current year is 42.4%. Image Source: Zacks Investment Research
In the second quarter, the company’s adjusted earnings per share were 57 cents, which beat the Zacks Consensus Estimate of 50 cents. The bottom line was also up from 33 cents in the year-ago quarter. Its revenues were $2,394.1 million in the quarter, increasing 19.2% year over year.
The company expects adjusted EBITDA for third-quarter 2021 to be in the range of $175-$185 million and adjusted EBITDA in a band of $705-$725 million, implying an increase from $635.8 million reported in 2020. Forecast for net free cash flow for the year has been reiterated in the band of $280-$300 million. Under the S22 Program, the company is focused on improving adjusted EBITDA margins to 9% by the end of 2022 and expects to reduce leverage to 2.7x or lower by the end of 2021. It also forecasts 2021 year-end liquidity to be more than $800 million, inclusive of $100 million of debt pay-down in the second half of the year. Univar expects more normalized margins and continued market share growth in the second half of 2021 as its aims for a more customer-centric approach. Zacks Ranks & Stocks to Consider
Currently, Univar has a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include BASF SE ( BASFY Quick Quote BASFY - Free Report) and Avient Corporation ( AVNT Quick Quote AVNT - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) and Dow Inc. ( DOW Quick Quote DOW - Free Report) , carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here BASF has a projected earnings growth rate of 96.7% for the current year. The company’s shares have rallied 26.9% in a year. Avient has a projected earnings growth rate of 75.1% for the current year. The company’s shares have jumped 92.4% in a year. Dow has a projected earnings growth rate of 403% for the current year. The company’s shares have jumped 36.5% in a year.