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Veritiv (VRTV) Q4 Earnings Lag Estimates, Revenues Dip Y/Y
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Veritiv Corporation reported earnings per share of $5.20 in fourth-quarter 2022, reflecting a 42% improvement from the year-ago quarter. However, the bottom line missed the Zacks Consensus Estimate of $5.44 per share.
Including one-time items, the company reported earnings per share of $5.31 compared with the prior-year quarter’s $3.90.
Veritiv’s total revenues decreased 10.8% year over year to $1,663 million.
Cost of sales was down 12.8% year over year to $1,271 million in the reported quarter. The gross profit fell 3.5% year over year to $392 million. The gross margin was 23.6% in the fourth quarter compared with the prior-year quarter’s 21.8%.
The adjusted EBITDA was $121 million, up 4.2% from the year-earlier quarter. The adjusted EBITDA margin expanded to 7.3% from 6.2% in the prior-year quarter.
Veritiv Corporation Price, Consensus and EPS Surprise
Veritiv had cash and cash equivalents of $40.6 million as of Dec 31, 2022, down from $49.3 million as of Dec 31, 2021. Long-term debt was $264.8 million as of Dec 31, 2022, down from $499.7 million as of Dec 31, 2021. The company ended the year with a record-low net leverage ratio of 0.4X.
Net cash provided by operating activities in 2022 was $252 million compared with the prior year’s $155 million. The company returned $200 million to shareholders in the form of share repurchases and $8.5 million in the form of a quarterly dividend.
2022 Performance
The company delivered adjusted earnings per share of $23.29 in 2022 compared with $9.01 reported in 2021. The bottom line missed the Zacks Consensus Estimate of $23.50 per share.
Including one-time items, the company reported earnings per share of $23.85 compared with the prior-year quarter’s $9.50. Veritiv’s total revenues increased 4.3% year over year to $7,146 million in 2022.
2023 Guidance
Veritiv expects a net income of $265-$305 million in 2023. Adjusted earnings per share are expected to be $19.00-$22.00 for the year. Veritiv anticipates adjusted EBITDA of $430-$490 million.
Free cash flow for 2023 is expected to be at $275 million, with capital expenditure at $30 million.
Price Performance
Shares of Veritiv have gained 22.2% in a year against the industry’s fall of 15.5%.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Air Liquide’s 2023 earnings per share is pegged at $1.34, indicating year-over-year growth of 20.7%. Earnings estimates have moved 7.2% north in the past 60 days. AIQUY’s shares have gained 6.5% in the past year.
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Veritiv (VRTV) Q4 Earnings Lag Estimates, Revenues Dip Y/Y
Veritiv Corporation reported earnings per share of $5.20 in fourth-quarter 2022, reflecting a 42% improvement from the year-ago quarter. However, the bottom line missed the Zacks Consensus Estimate of $5.44 per share.
Including one-time items, the company reported earnings per share of $5.31 compared with the prior-year quarter’s $3.90.
Veritiv’s total revenues decreased 10.8% year over year to $1,663 million.
Cost of sales was down 12.8% year over year to $1,271 million in the reported quarter. The gross profit fell 3.5% year over year to $392 million. The gross margin was 23.6% in the fourth quarter compared with the prior-year quarter’s 21.8%.
The adjusted EBITDA was $121 million, up 4.2% from the year-earlier quarter. The adjusted EBITDA margin expanded to 7.3% from 6.2% in the prior-year quarter.
Veritiv Corporation Price, Consensus and EPS Surprise
Veritiv Corporation price-consensus-eps-surprise-chart | Veritiv Corporation Quote
Financial Position
Veritiv had cash and cash equivalents of $40.6 million as of Dec 31, 2022, down from $49.3 million as of Dec 31, 2021. Long-term debt was $264.8 million as of Dec 31, 2022, down from $499.7 million as of Dec 31, 2021. The company ended the year with a record-low net leverage ratio of 0.4X.
Net cash provided by operating activities in 2022 was $252 million compared with the prior year’s $155 million. The company returned $200 million to shareholders in the form of share repurchases and $8.5 million in the form of a quarterly dividend.
2022 Performance
The company delivered adjusted earnings per share of $23.29 in 2022 compared with $9.01 reported in 2021. The bottom line missed the Zacks Consensus Estimate of $23.50 per share.
Including one-time items, the company reported earnings per share of $23.85 compared with the prior-year quarter’s $9.50.
Veritiv’s total revenues increased 4.3% year over year to $7,146 million in 2022.
2023 Guidance
Veritiv expects a net income of $265-$305 million in 2023. Adjusted earnings per share are expected to be $19.00-$22.00 for the year. Veritiv anticipates adjusted EBITDA of $430-$490 million.
Free cash flow for 2023 is expected to be at $275 million, with capital expenditure at $30 million.
Price Performance
Shares of Veritiv have gained 22.2% in a year against the industry’s fall of 15.5%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Veritiv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Air Liquide (AIQUY - Free Report) . CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy), and AIQUY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Air Liquide’s 2023 earnings per share is pegged at $1.34, indicating year-over-year growth of 20.7%. Earnings estimates have moved 7.2% north in the past 60 days. AIQUY’s shares have gained 6.5% in the past year.