NYSE$UVV

Universal Corp/VA · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported increased earnings per share and operating income driven by strong tobacco shipment volumes and strategic investments in plant-based ingredients platform.

Universal Corporation reported increased net income and operating income for the quarter ended December 31, 2020, driven by strong tobacco shipment volumes and the addition of businesses acquired in the Ingredients Operations segment. The company's strategic investments in its plant-based ingredients platform are expected to generate between 10% and 20% of EBITDA in fiscal year 2022.

  • Net income for the quarter ended December 31, 2020, was $33.3 million, or $1.34 per diluted share, compared to $26.0 million, or $1.04 per diluted share, for the prior year's third fiscal quarter.
  • Operating income for the third quarter of fiscal year 2021 increased to $60.2 million compared to $44.1 million for the three months ended December 31, 2019.
  • Consolidated revenues increased by $167.9 million to $672.9 million for the three months ended December 31, 2020, compared to the same period in fiscal year 2020.
  • Tobacco Operations segment operating income increased by $38.4 million to $84.1 million for the quarter ended December 31, 2020, compared with the same period for fiscal year 2020.

Headline financials

Total Revenue

$665M

Previous: $503M+32.0%
EPS (adj)

$2.19

Previous: $1.08+102.8%
Capital Expenditures

-$33.8M

Previous: -$21.7M-55.8%
Free Cash Flow

$4.83M

Previous: -$195M+102.5%
Net Income

$33.3M

Previous: $26M+28.1%
Operating Income

$60.2M

Previous: $44.1M+36.4%
Gross Profit

$131M

Previous: $91.3M+43.6%
Cash & Equivalents

$95.4M

Previous: $64.7M+47.4%
Total Assets

$2.39B

Previous: $2.15B+11.1%

Revenue & EPS history

Universal Corp · Revenue · Quarterly

$665M

Q3 2021+32%vs Q3 2020

Revenue by segment

Universal Corp · $673M total across 2 segments · Q3 2021

  • Tobacco Operations
    $624M
  • Ingredients Operations
    $49.1M

Forward guidance

The company anticipates adjusted operating income for fiscal year 2021 to materially exceed that for fiscal year 2020, barring unforeseen events such as shipment delays or COVID-19 related uncertainties. The new plant-based ingredients platform is expected to generate between 10% and 20% of EBITDA in fiscal year 2022.

Tailwinds

  • Strong tobacco shipment volumes expected to continue in the fourth fiscal quarter of 2021.
  • Uncommitted tobacco inventory levels remain within the target range.
  • Significant and strategic investments in the plant-based ingredients platform.
  • Expect the new platform will generate between 10% and 20% of our EBITDA in fiscal year 2022.
  • Opportunities to increase market share and enhance leaf tobacco businesses.

Headwinds

  • Potential shipment delays due to lack of vessel or container availability, port congestion, or COVID-19 related uncertainties.
  • Ongoing international competitor pricing pressures.
  • Operating and growing our businesses during the pandemic has not been easy.
  • Slower processing of products due to controlled staffing in facilities that could lead to further delays of shipments to customers.
  • Expect continued volatility in foreign currency exchange rates during fiscal year 2021.

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro