We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Univar's (UNVR) Q3 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Univar Solutions Inc. recorded profits of $130 million or 78 cents per share in third-quarter 2022, up from $84.4 million or 49 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were 84 cents, up from 62 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 75 cents.
The company’s revenues were $2,983.5 million in the quarter, up around 20% year over year. The top line surpassed the Zacks Consensus Estimate of $2,928.4 million. The upside in sales can be attributed to the company’s pricing discipline to counter inflation and market share gains.
Univar Solutions Inc. Price, Consensus and EPS Surprise
Revenues from the USA division rose around 25% year over year to $2,021.2 million in the quarter. The upside was primarily driven by pricing discipline and market share gains.
The EMEA segment raked in revenues of $486.5 million, up roughly 6% year over year, supported by pricing discipline in inflationary markets and market share gains.
Revenues from the Canada segment went up around 23% year over year to $273.9 million. The upside was led by pricing discipline and market share gains.
Revenues from the LATAM unit rose roughly 21% to $201.9 million, driven mainly by pricing discipline and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $276.3 million, up around 25% year over year. Long-term debt was $2,466 million, up around 12% year over year.
Net cash provided by operating activities rose to $257 million in the reported quarter from $123.7 million in the prior-year quarter. The company repurchased shares worth $100 million during the quarter.
Outlook
The company expects adjusted EBITDA for fourth-quarter 2022 to be $180-$200 million. For 2022, adjusted EBITDA is now forecast in the band of $1,050-$1,070 million, compared with $1,040-$1,080 million expected earlier. The guidance reflects strong operational execution, market share growth and cost management. The company also sees net free cash flow for 2022 to be around $400 million.
Price Performance
Univar’s shares have lost 2.2% over a year against 12% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Albemarle Corporation (ALB - Free Report) and Commercial Metals Company (CMC - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 46% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 2% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 31% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Univar's (UNVR) Q3 Earnings and Revenues Surpass Estimates
Univar Solutions Inc. recorded profits of $130 million or 78 cents per share in third-quarter 2022, up from $84.4 million or 49 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were 84 cents, up from 62 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 75 cents.
The company’s revenues were $2,983.5 million in the quarter, up around 20% year over year. The top line surpassed the Zacks Consensus Estimate of $2,928.4 million. The upside in sales can be attributed to the company’s pricing discipline to counter inflation and market share gains.
Univar Solutions Inc. Price, Consensus and EPS Surprise
Univar Solutions Inc. price-consensus-eps-surprise-chart | Univar Solutions Inc. Quote
Segment Review
Revenues from the USA division rose around 25% year over year to $2,021.2 million in the quarter. The upside was primarily driven by pricing discipline and market share gains.
The EMEA segment raked in revenues of $486.5 million, up roughly 6% year over year, supported by pricing discipline in inflationary markets and market share gains.
Revenues from the Canada segment went up around 23% year over year to $273.9 million. The upside was led by pricing discipline and market share gains.
Revenues from the LATAM unit rose roughly 21% to $201.9 million, driven mainly by pricing discipline and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $276.3 million, up around 25% year over year. Long-term debt was $2,466 million, up around 12% year over year.
Net cash provided by operating activities rose to $257 million in the reported quarter from $123.7 million in the prior-year quarter. The company repurchased shares worth $100 million during the quarter.
Outlook
The company expects adjusted EBITDA for fourth-quarter 2022 to be $180-$200 million. For 2022, adjusted EBITDA is now forecast in the band of $1,050-$1,070 million, compared with $1,040-$1,080 million expected earlier. The guidance reflects strong operational execution, market share growth and cost management. The company also sees net free cash flow for 2022 to be around $400 million.
Price Performance
Univar’s shares have lost 2.2% over a year against 12% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Albemarle Corporation (ALB - Free Report) and Commercial Metals Company (CMC - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 46% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 2% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 31% in a year.