Universal (NYSE:UVV) Announces Quarterly Earnings Results, Misses Estimates By $0.45 EPS

Universal (NYSE:UVV) issued its quarterly earnings data on Wednesday. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.45), FiscalAI reports. The business had revenue of $523.78 million for the quarter, compared to analysts’ expectations of $587.00 million. Universal had a net margin of 1.12% and a return on equity of 4.43%.

Universal Stock Down 1.4%

NYSE:UVV traded down $0.73 during midday trading on Wednesday, reaching $52.03. 295,212 shares of the stock traded hands, compared to its average volume of 229,006. Universal has a 12-month low of $49.19 and a 12-month high of $59.38. The business has a 50-day moving average of $52.73 and a two-hundred day moving average of $53.30. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.66 and a current ratio of 3.49. The stock has a market capitalization of $1.30 billion, a PE ratio of 20.06, a price-to-earnings-growth ratio of 4.09 and a beta of 0.60.

Universal Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Monday, July 13th were given a dividend of $0.83 per share. The ex-dividend date of this dividend was Monday, July 13th. This is a positive change from Universal’s previous quarterly dividend of $0.82. This represents a $3.32 dividend on an annualized basis and a yield of 6.4%. Universal’s dividend payout ratio is currently 257.36%.

Analyst Ratings Changes

Several analysts have issued reports on the company. Zacks Research raised Universal from a “strong sell” rating to a “hold” rating in a research report on Monday. Weiss Ratings cut Universal from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 2nd. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Universal currently has an average rating of “Hold”.

Insider Transactions at Universal

In other Universal news, Director Robert C. Sledd sold 2,845 shares of Universal stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $54.12, for a total value of $153,971.40. Following the transaction, the director directly owned 11,959 shares of the company’s stock, valued at approximately $647,221.08. The trade was a 19.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Aster Capital Management DIFC Ltd raised its stake in Universal by 1,634.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 555 shares of the company’s stock valued at $29,000 after buying an additional 523 shares during the last quarter. Ankerstar Wealth LLC purchased a new stake in shares of Universal during the fourth quarter worth about $37,000. EverSource Wealth Advisors LLC grew its stake in shares of Universal by 265.0% during the second quarter. EverSource Wealth Advisors LLC now owns 719 shares of the company’s stock worth $42,000 after acquiring an additional 522 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Universal during the fourth quarter valued at about $59,000. Finally, Triumph Capital Management acquired a new position in shares of Universal during the third quarter valued at about $63,000. 81.00% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Universal

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Universal reduced total debt by $55.5 million year over year and reported approximately $1.1 billion in available liquidity as of June 30, providing financial flexibility despite the earnings downturn. Universal UVV reports $5 million Q1 loss as revenue falls 12%
• Positive Sentiment: Zacks Research upgraded UVV from “strong sell” to “hold,” which may provide limited support, although it does not represent a bullish recommendation. Zacks Research
• Neutral Sentiment: Shareholders elected the company’s director nominees at the August 4 annual meeting, maintaining the existing governance structure. Universal Reports Weak Q1 Results Amid Tobacco Oversupply
• Neutral Sentiment: Universal announced a leadership transition plan for its Ingredients segment, with J. Patrick O’Keefe intending to retire; investors may look for details on the successor and turnaround strategy. Universal Corporation Announces Universal Ingredients Leadership Transition Plan
• Negative Sentiment: Revenue fell 12% to $523.8 million, missing the $587.0 million consensus estimate. Universal posted a $5.0 million net loss, or a $0.20 diluted loss per share, versus prior-year profit of $8.5 million and EPS of $0.34; the loss also missed expectations for $0.25 EPS. Operating income dropped to $2.3 million from $33.8 million. Universal UVV reports $5 million Q1 loss as revenue falls 12%
• Negative Sentiment: Both operating segments weakened: tobacco revenue declined 13% to $437.1 million, while Ingredients revenue decreased 3% to $86.7 million and recorded an operating loss. Recent insider activity also showed three sales and no purchases over the past six months, a modest negative signal.

About Universal

Universal Corporation (NYSE: UVV) is a global agribusiness company primarily engaged in the procurement, processing and sale of leaf tobacco. Headquartered in Richmond, Virginia, the company sources cured leaf tobacco from key growing regions in North and South America, Africa and Asia. Universal serves major multinational tobacco manufacturers by providing a full range of services including inventory management, quality control and logistics support to ensure a consistent and reliable supply of tobacco leaf.

In addition to its core leaf tobacco operations, Universal offers integrated supply-chain services that encompass warehousing, distribution and ingredient sourcing for smokeless and novel tobacco products.