Universal Corporation's Q3 revenue falls on market headwinds in ingredients operations

Universal

09/02/2026 13:15

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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)