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Univar's (UNVR) Q4 Earnings and Revenues Lag Estimates
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Univar Solutions Inc. reported profits of $71.6 million or 44 cents per share in the fourth- quarter of 2022, down from $156.8 million or 91 cents per share in the year-ago quarter.
Adjusted earnings in the reported quarter were 47 cents per share, down 22% from 60 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 56 cents.
The company’s revenues were $2,592.6 million in the quarter, up 3.8% year over year. The top line lagged the Zacks Consensus Estimate of $2,798.1 million. The upside in sales can be attributed to the company’s pricing discipline, partly offset by lower demand resulting from consumer destocking.
Univar Solutions Inc. Price, Consensus and EPS Surprise
Revenues from the USA division rose 5.3% year over year to $1,698.9 million in the quarter. The upside was primarily driven by pricing discipline, which was mitigated by consumer destocking.
The EMEA segment reported $468.8 million in revenues, down 2.5% year over year. The upside in external sales was supported by pricing discipline, offset by weak demand.
Revenues from the Canada segment went up 3.9% year over year to $255 million. The upside was led by pricing discipline offset by weak demand due to consumer destocking.
Revenues from the LATAM unit rose 7.7% to $169.9 million, driven mainly by pricing discipline and the Sweetmix acquisition, which mitigated the impact of consumer destocking that led to lower demand.
FY22 Results
Earnings, as adjusted, in the full-year 2022 were $3.40 per share compared with $2.22 a year ago. Net sales climbed 20.3% to $11,475.3 million.
Financials
Univar ended the quarter with cash and cash equivalents of $385.3 million, up 53.2% year over year. Long-term debt was $2,426.9 million, up 9.1%.
Net cash provided by operating activities rose to $546.4 million in 2022 from $290.3 million in the prior-year quarter. The company repurchased shares worth more than $400 million in 2022.
Outlook
The company expects adjusted EBITDA for first-quarter 2023 to be $200-$220 million. For 2023, adjusted EBITDA is forecast in the band of $900-$930 million. The guidance reflects strong operational execution, market share growth, cost management and savings seeding from its Value Capture Program. The company also sees net free cash flow for 2023 to be in the range of $425-$445 million.
Price Performance
Univar’s shares have gained 12.8% over a year compared with 10.3% rise of the industry.
ATI’s shares have gained 53.5% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 31.9% in the past year. The company has an earnings growth rate of 515.8% for the current year.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
Nucor’s shares have gained 23.5% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13.3% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
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Univar's (UNVR) Q4 Earnings and Revenues Lag Estimates
Univar Solutions Inc. reported profits of $71.6 million or 44 cents per share in the fourth- quarter of 2022, down from $156.8 million or 91 cents per share in the year-ago quarter.
Adjusted earnings in the reported quarter were 47 cents per share, down 22% from 60 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 56 cents.
The company’s revenues were $2,592.6 million in the quarter, up 3.8% year over year. The top line lagged the Zacks Consensus Estimate of $2,798.1 million. The upside in sales can be attributed to the company’s pricing discipline, partly offset by lower demand resulting from consumer destocking.
Univar Solutions Inc. Price, Consensus and EPS Surprise
Univar Solutions Inc. price-consensus-eps-surprise-chart | Univar Solutions Inc. Quote
Segment Highlights
Revenues from the USA division rose 5.3% year over year to $1,698.9 million in the quarter. The upside was primarily driven by pricing discipline, which was mitigated by consumer destocking.
The EMEA segment reported $468.8 million in revenues, down 2.5% year over year. The upside in external sales was supported by pricing discipline, offset by weak demand.
Revenues from the Canada segment went up 3.9% year over year to $255 million. The upside was led by pricing discipline offset by weak demand due to consumer destocking.
Revenues from the LATAM unit rose 7.7% to $169.9 million, driven mainly by pricing discipline and the Sweetmix acquisition, which mitigated the impact of consumer destocking that led to lower demand.
FY22 Results
Earnings, as adjusted, in the full-year 2022 were $3.40 per share compared with $2.22 a year ago. Net sales climbed 20.3% to $11,475.3 million.
Financials
Univar ended the quarter with cash and cash equivalents of $385.3 million, up 53.2% year over year. Long-term debt was $2,426.9 million, up 9.1%.
Net cash provided by operating activities rose to $546.4 million in 2022 from $290.3 million in the prior-year quarter. The company repurchased shares worth more than $400 million in 2022.
Outlook
The company expects adjusted EBITDA for first-quarter 2023 to be $200-$220 million. For 2023, adjusted EBITDA is forecast in the band of $900-$930 million. The guidance reflects strong operational execution, market share growth, cost management and savings seeding from its Value Capture Program. The company also sees net free cash flow for 2023 to be in the range of $425-$445 million.
Price Performance
Univar’s shares have gained 12.8% over a year compared with 10.3% rise of the industry.
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Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider in the basic materials space are ATI Inc. (ATI - Free Report) , Cal-Maine Foods, Inc. (CALM - Free Report) and Nucor Corporation (NUE - Free Report) . All three stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI’s shares have gained 53.5% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 31.9% in the past year. The company has an earnings growth rate of 515.8% for the current year.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
Nucor’s shares have gained 23.5% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13.3% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.