Universal Corporation's Q3 revenue falls on market headwinds in ingredients operations
Overview
Agriproducts company's Q3 revenue fell 8% yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company faced higher fixed costs and market headwinds in ingredients operations
Outlook
Universal sees evolving market dynamics with oversupply challenges in tobacco operations
Company aims to convert customer interest into sales amid market headwinds in Ingredients
Universal enhances financial flexibility with refinanced and upsized credit facility
Result Drivers
TOBACCO DEMAND - Firm customer demand for most tobacco styles supported tobacco operations despite lower sales volumes
INGREDIENTS GROWTH - Ingredients operations maintained revenue growth through organic growth despite market challenges
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $861.30 mln | $927.20 mln (1 Analyst) |
Q3 Adjusted EPS | Miss | $1.35 | $1.92 (1 Analyst) |
Q3 EPS |
| $1.32 |
|
Q3 Net Income |
| $33.20 mln |
|
Q3 Gross Margin |
| 18.50% |
|
Q3 Adjusted Operating Income |
| $82.70 mln |
|
Q3 Operating Income |
| $82 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Universal Corp is $78.00, about 34.9% above its February 6 closing price of $57.82
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw7PSRJBa
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