We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.