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Veritiv Corporation reported earnings per share of $5.00 in first-quarter 2023, reflecting a 2% decline from the year-ago quarter. However, the bottom line beat the Zacks Consensus Estimate of earnings of $4.47 per share.
Veritiv’s total revenues decreased 19% year over year to $1,510 million.
Cost of sales was down 21% year over year to $1,144 million in the reported quarter. The gross profit fell 9% year over year to $366 million. The gross margin was 24.2% in the quarter under review, compared with the prior-year quarter’s 21.7%.
The adjusted EBITDA was $103.8 million, down 13% from the year-earlier quarter. The adjusted EBITDA margin in the first quarter was 6.9%. The company had reported an adjusted EBITDA margin of 6.4% in the prior-year quarter.
Veritiv Corporation Price, Consensus and EPS Surprise
Veritiv had cash and cash equivalents of $33 million as of Mar 31, 2023, down from $40.6 million as of Dec 31, 2022. Long-term debt was $232 million as of Mar 31, 2023, down from $265 million as of Dec 31, 2022. The company ended the year with a record-low net leverage ratio of 0.3X.
Net cash provided by operating activities in the first quarter of 2023 was $71 million, compared with the prior year’s outflow of $5.9 million. The company returned $8.5 million to shareholders as dividends.
2023 Guidance
Veritiv expects net income to be in the range of $265 million to $305 million in 2023. Adjusted earnings per share are expected to be in the range of $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.
Price Performance
Shares of Veritiv have fallen 19.4% in a year compared with the industry’s 31.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Veritiv currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for STLD's current-year earnings has been revised 24% upward in the past 60 days. Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 10.7%, on average. STLD has gained around 26% in a year.
The Zacks Consensus Estimate for PPG's current-year earnings has been revised 11.7% upward in the past 60 days.
PPG Industries’ earnings beat the consensus estimate in three of the last four quarters while missing in one quarter. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG has gained around 8% in a year.
The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 5.9%, on average. LIN’s shares have gained roughly 21% in the past year.
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Veritiv (VRTV) Q1 Earnings Beat Estimates, Revenues Dip Y/Y
Veritiv Corporation reported earnings per share of $5.00 in first-quarter 2023, reflecting a 2% decline from the year-ago quarter. However, the bottom line beat the Zacks Consensus Estimate of earnings of $4.47 per share.
Veritiv’s total revenues decreased 19% year over year to $1,510 million.
Cost of sales was down 21% year over year to $1,144 million in the reported quarter. The gross profit fell 9% year over year to $366 million. The gross margin was 24.2% in the quarter under review, compared with the prior-year quarter’s 21.7%.
The adjusted EBITDA was $103.8 million, down 13% from the year-earlier quarter. The adjusted EBITDA margin in the first quarter was 6.9%. The company had reported an adjusted EBITDA margin of 6.4% 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 $33 million as of Mar 31, 2023, down from $40.6 million as of Dec 31, 2022. Long-term debt was $232 million as of Mar 31, 2023, down from $265 million as of Dec 31, 2022. The company ended the year with a record-low net leverage ratio of 0.3X.
Net cash provided by operating activities in the first quarter of 2023 was $71 million, compared with the prior year’s outflow of $5.9 million. The company returned $8.5 million to shareholders as dividends.
2023 Guidance
Veritiv expects net income to be in the range of $265 million to $305 million in 2023. Adjusted earnings per share are expected to be in the range of $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.
Price Performance
Shares of Veritiv have fallen 19.4% in a year compared with the industry’s 31.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Veritiv currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , PPG Industries, Inc. (PPG - Free Report) and Linde plc (LIN - Free Report) . All these stocks carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STLD's current-year earnings has been revised 24% upward in the past 60 days. Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 10.7%, on average. STLD has gained around 26% in a year.
The Zacks Consensus Estimate for PPG's current-year earnings has been revised 11.7% upward in the past 60 days.
PPG Industries’ earnings beat the consensus estimate in three of the last four quarters while missing in one quarter. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG has gained around 8% in a year.
The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 5.9%, on average. LIN’s shares have gained roughly 21% in the past year.