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Univar (UNVR) Earnings and Revenues Beat Estimates in Q1

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Univar Solutions Inc. (UNVR - Free Report) recorded profits of $180.8 million or $1.06 per share in first-quarter 2022, up from $66.2 million or 39 cents per share in the year-ago quarter.

Barring one-time items, earnings per share were $1.07, up from 43 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 84 cents.

The company’s revenues were $2,882.6 million in the quarter, up around 33.7% year over year. The top line beat the Zacks Consensus Estimate of $2,601.6 million.

The upside in sales can be attributed to the favorable impact of chemical price inflation, market share gains and higher industrial demand.

Univar Solutions Inc. Price, Consensus and EPS Surprise

 

Univar Solutions Inc. Price, Consensus and EPS Surprise

Univar Solutions Inc. price-consensus-eps-surprise-chart | Univar Solutions Inc. Quote

 

Segment Review

Revenues from the USA division rallied around 42.6% year over year to $1,843.2 million in the quarter. The upside was primarily driven by higher chemical prices, industrial demand and market share gains.

The EMEA segment raked in revenues of $562.2 million, up roughly 11.1% year over year. Chemical price inflation and market share gains were partly offset by the effects of the Distrupol divestiture.

Revenues from the Canada segment went up around 31.7% year over year to $293.4 million. The upside was led by chemical price inflation and market share gains.

Revenues from the LATAM unit rose roughly 37.4% to $183.8 million, driven mainly by higher chemical prices and the Sweetmix acquisition.

Financials

Univar ended the quarter with cash and cash equivalents of $245.4 million, down 2.4% sequentially. Long-term debt was $2,416.9 million, up around 8.7% sequentially.

Net cash used by operating activities was $134.4 million in the first quarter, up from $92.3 million a year ago.

Outlook

The company expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is forecast in the band of $1,000-$1,050 million. The guidance reflects anticipated continued strong business conditions, market share growth and benefits from Nexeo net synergies. The company also sees net free cash flow for 2022 in the range of $400-$450 million.

Price Performance

Univar’s shares have gained 8.4% over a year against 7.9% decline of the industry.

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Zacks Rank & Other Key Picks

Univar carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Cabot Corporation (CBT - Free Report) .

Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 51.1% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 20.5%. ASIX has surged 47.5% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 6.7% over a year.


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