Universal Q1 revenue falls 12% on lower tobacco sales
Universal Q1 revenue falls 12% on lower tobacco sales
Overview
US agri-products supplier's fiscal Q1 revenue fell 12% on lower tobacco sales volumes and prices
Adjusted EPS for fiscal Q1 was negative, with a loss of $0.20
Company cites tobacco oversupply, weak demand and high fixed costs in ingredients business for declines
Outlook
Company expects tobacco shipments to be heavily weighted to second half of fiscal 2027
Universal expects customer demand to remain consistent with its fiscal year sales plan
Company anticipates improvement efforts in ingredients segment to continue through next fiscal year
Result Drivers
TOBACCO OVERSUPPLY - Co said oversupply in flue-cured and burley tobacco markets led to lower sales volumes and prices
LESS FAVORABLE PRODUCT MIX - Co attributed lower tobacco segment operating income to a less favorable product mix in Asia and reduced sales of carryover crop tobacco
INGREDIENTS HEADWINDS - Persistent weakness in consumer-packaged-goods industry, high fixed costs at expanded facility, and longer product development cycles weighed on ingredients segment
Company press release: ID:nBwD1D8Za
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Adjusted EPS | Miss | -$0.20 | $0.25 (1 Analyst) |
Q1 Loss Per Share |
| $0.20 |
|
Q1 Net Loss |
| $5 mln |
|
Q1 Gross Margin |
| 15.90% |
|
Q1 Adjusted Operating Income |
| $2.30 mln |
|
Q1 Operating Income |
| $2.30 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Universal Corporation is $74.00, about 40.3% above its August 4 closing price of $52.76
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 5 - Pyxus International Q1 revenue falls on lower prices and shipment timing
Aug 4 - Ingredion Inc beats Q2 sales estimates, reaffirms 2026 guidance
Aug 4 - ADM Q2 results beat; raises 2026 adjusted EPS outlook
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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.)