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Tale of the Tape

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Univar (UNVR) Misses Q3 Earnings and Sales Estimates
November 04, 2016

UNVR

Trades from $3

Univar Inc. (UNVR - Free Report) is a global distributor of chemicals and innovative services. The company offers solvents, resins, pigments, acids, bases, surfactants, glycols, inorganic compounds and alcohols. It also offers transportation and warehousing infrastructure, chemicals and hazardous materials’ handling services. The company serves in coatings and adhesives, food, oil and gas, personal care and pharmaceutical industries.

Univar continues to face macroeconomic headwinds including declining demand in the upstream oil and gas market, stronger U.S. dollar and deflation in chemical prices. However, the company is on an aggressive acquisition spree and is executing several cost saving programs.

Let’s have a quick look at the chemical company’s third-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Univar for the third quarter has been stable ahead of the release. Univar has delivered an average negative surprise of 31.52% over the trailing 4 quarters.

UNIVAR INC Price and EPS Surprise

 

UNIVAR INC Price and EPS Surprise | UNIVAR INC Quote

Earnings
 
Univar logged adjusted earnings of 17 cents per share in the third quarter, compared with earnings of 9 cents per share in prior year quarter. That missed the Zacks Consensus Estimate of 20 cents.

Revenues
 
Univar recorded net sales of $1,999.7 million, down 9.5% year over year. It missed the Zacks Consensus Estimate of $2, 055 million.

Key Stats/Developments to Note

Notwithstanding macroeconomic challenges and sustained oil and gas headwinds, Unilever expects adjusted EBITDA for the fourth quarter to be comparable to that of year ago quarter. The company expects fourth-quarter adjusted EBITDA to be in the range of $127 million and $132 million. As a result, the company's adjusted EBITDA outlook for 2016 has been narrowed from a range of $550 million to $565 million to a range of $555 million to $560 million.

Zacks Rank

Currently, Univar has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Univar’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Univar’s earnings report!

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