NYSE$UVV

Universal Corp/VA · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a decrease in net income and operating income due to timing factors related to COVID-19 and lower tobacco volumes.

Universal Corporation reported a decrease in net income and operating income for the second quarter of fiscal year 2021, primarily due to COVID-19 related timing factors impacting tobacco shipments and processing. The company is optimistic about meeting adjusted operating income targets for the fiscal year, excluding acquisitions, barring unforeseen shipping delays or COVID-19 related uncertainties.

  • Net income decreased to $7.5 million, or $0.30 per diluted share, compared to $28.1 million, or $1.11 per diluted share, for the prior year’s second fiscal quarter.
  • Operating income decreased to $16.4 million compared to $43.2 million for the three months ended September 30, 2019.
  • Consolidated revenues decreased by $98.9 million to $377.0 million for the three months ended September 30, 2020, compared to the same period in fiscal year 2020.
  • The company experienced slowdowns in tobacco processing and customer orders due to COVID-19, but customer orders for crop year 2020 are strong.

Headline financials

Total Revenue

$376M

Previous: $475M-20.7%
EPS (adj)

$0.37

Previous: $1.11-66.7%
Capital Expenditures

-$22.8M

Previous: -$13.3M-71.0%
Free Cash Flow

-$173M

Previous: -$293M+41.1%
Net Income

$7.5M

Previous: $28.1M-73.3%
Operating Income

$16.4M

Previous: $43.2M-62.1%
Gross Profit

$68.1M

Previous: $94.6M-28.0%
Cash & Equivalents

$57.1M

Previous: $53.2M+7.4%
Total Assets

$2.24B

Previous: $2.22B+1.1%

Revenue & EPS history

Universal Corp · Revenue · Quarterly

$376M

Q2 2021-20.7%vs Q2 2020

Revenue by segment

Universal Corp · $638M total across 2 segments · Q2 2024

  • Tobacco Operations
    $555M-39.6%
  • Ingredients Operations
    $83.8M-48.5%

Forward guidance

Universal Corporation expects adjusted operating income for fiscal year 2021, excluding acquisitions, will materially exceed that of fiscal year 2020, barring any unforeseen events including shipment delays due to lack of vessel or container availability, port congestion, or COVID-19 related uncertainties.

Tailwinds

  • Strong tobacco customer orders for crop year 2020.
  • Vast majority of committed orders are packed awaiting shipment.
  • Uncommitted inventories have come down significantly and are within the target range.
  • Focus on integrating the acquired Silva International.
  • Opportunities in the core tobacco business, such as demand for natural wrapper production.

Headwinds

  • Timing factors related to COVID-19 continue to impact results.
  • Potential shipment delays due to lack of vessel or container availability.
  • Port congestion could impact shipment timing.
  • COVID-19 related uncertainties could impact financial results.
  • Slower processing of products due to controlled staffing in facilities that could lead to further delays of shipments to our customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.4%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.2%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+30.3%

Q4 2018

Best reaction

-14.9%

Q1 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.0%+3.5%
Q3 2026-10.7%-7.5%-9.6%
Q2 2026+1.4%+2.6%+1.7%
Q1 2026-4.6%-0.7%+1.8%
Q2 2025+0.3%+0.0%+11.7%
Q3 2025+1.4%-0.7%+2.7%
Q1 2025+5.2%+3.3%+5.3%
Q4 2024-12.2%-13.2%-9.8%
Q3 2024-7.7%-9.3%-12.7%
Q2 2024+13.6%+17.8%+29.2%
Q1 2024-1.5%-2.4%-5.8%
Q4 2023-0.5%-1.4%-6.5%
Q3 2023-0.4%+1.1%-6.1%
Q2 2023+9.2%+10.3%+15.8%
Q1 2023-6.1%-6.0%-8.6%
Q4 2022+1.6%+2.8%-3.7%
Q3 2022-4.6%-5.8%+6.1%
Q2 2022+2.5%+2.9%+1.1%
Q1 2022-3.9%-2.6%-1.9%
Q4 2021-2.8%-5.1%-5.0%
Q3 2021+7.6%+9.0%+20.1%
Q2 2021+0.2%+11.1%+19.1%
Q1 2021+2.1%+6.2%+1.1%
Q4 2020-1.6%-3.2%-8.8%
Q3 2020-4.3%-4.9%-8.9%
Q2 2020-11.0%-9.8%-3.8%
Q1 2020-5.8%-9.8%-9.5%
Q4 2019+15.0%+12.0%+14.4%
Q3 2019+3.3%+0.3%+6.2%
Q2 2019-2.0%-4.5%-10.4%
Q1 2019-13.2%-16.9%-11.8%
Q4 2018+30.3%+36.8%+37.1%
Q3 2018+1.2%+9.2%+8.7%
Q2 2018-5.4%-2.1%-6.0%
Q1 2018-3.8%-9.2%-8.5%
Q4 2017-4.7%-5.5%-6.5%
Q3 2017+15.6%+6.7%-4.8%
Q2 2017+4.9%-0.1%+10.8%
Q1 2017+3.9%+3.2%+3.0%
Q4 2016+4.3%+1.6%+1.5%
Q3 2016-2.5%
Q2 2016-0.0%
Q1 2016-14.0%
Q4 2015+6.9%
Q3 2015+6.5%
Q2 2015-6.0%
Q1 2015-3.9%
Q4 2014-4.4%
Q3 2014+7.9%
Q2 2014+1.3%
Q1 2014-5.0%
Q4 2013-2.5%
Q3 2013+0.3%
Q2 2013-2.2%
Q1 2013+2.3%
Q4 2012-0.2%
Q3 2012+3.1%
Q2 2012+3.1%
Q1 2012+1.9%
Q4 2009-1.5%
Q4 2011-1.5%
Q3 2010+3.4%
Q3 2011+3.4%
Q2 2011+1.1%
Q2 2010+1.1%
Q1 2010-14.9%
Q4 2010-14.9%
Q1 2011-14.9%

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