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Univar's (UNVR) Earnings and Revenues Surpass Estimates in Q1

Univar Solutions Inc. UNVR reported profits of $83.1 million or 52 cents per share in the first quarter of 2023, down from $180.8 million or $1.06 per share in the year-ago quarter.

Adjusted earnings in the reported quarter were 63 cents per share, down from $1.07 in the year-ago quarter. It beat the Zacks Consensus Estimate of 62 cents.

The company’s revenues were $2,684.9 million in the quarter, down around 7% year over year. The top line surpassed the Zacks Consensus Estimate of $2,491.8 million. The downside in sales can be attributed to lower demand, partly offset by the company’s pricing discipline.

 

Univar Solutions Inc. Price, Consensus and EPS Surprise

 

Univar Solutions Inc. Price, Consensus and EPS Surprise
Univar Solutions Inc. Price, Consensus and EPS Surprise

Univar Solutions Inc. price-consensus-eps-surprise-chart | Univar Solutions Inc. Quote

 

Segment Highlights

Revenues from the USA division fell around 6% year over year to $1,729.2 million in the quarter.

The EMEA segment reported $514.1 million in revenues, down roughly 9% year over year.

Revenues from the Canada segment went down around 7% year over year to $274.2 million.

Revenues from the LATAM unit fell around 9% to $167.4 million.

Financials

Univar ended the quarter with cash and cash equivalents of $377.7 million, up around 54% year over year. Long-term debt was $2,490.4 million, up around 3% year over year.

Net cash used by operating activities fell to $2.9 million in the reported quarter from $134.4 million in the year-ago quarter.

Outlook

Univar, in March 2023, agreed to be acquired by Apollo Funds in an all-cash transaction valued at around $8.1 billion. The transaction is expected to close in the second half of 2023, subject to approval by UNVR’s shareholders and regulatory clearances. Univar has not provided updated guidance due to the pending merger transaction.

Univar noted that it remains focused on delivering its business strategy and leveraging its global strengths in ingredients and specialties.

Zacks Rank & Other Key Picks

Univar currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, PPG Industries, Inc. PPG and Linde plc LIN.

Steel Dynamics currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 24.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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 29% in a year.

PPG Industries currently carries a Zacks Rank #2. 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 Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG has gained around 11% in a year.

Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days.

Linde beat 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 22% in the past year.

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