Universal (NYSE:UVV) Issues Earnings Results, Misses Estimates By $0.43 EPS

Universal (NYSE:UVV) released its quarterly earnings results on Wednesday. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.43), Zacks reports. The firm had revenue of $523.78 million for the quarter, compared to analysts’ expectations of $587.00 million. Universal had a return on equity of 4.43% and a net margin of 1.12%.

Universal Stock Up 1.5%

Shares of UVV stock traded up $0.76 during trading hours on Thursday, hitting $52.83. 149,158 shares of the company were exchanged, compared to its average volume of 223,470. 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 business’s 50-day simple moving average is $52.73 and its two-hundred day simple moving average is $53.30. Universal has a one year low of $49.19 and a one year high of $59.38. The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of 40.95, a P/E/G ratio of 4.09 and a beta of 0.60.

Universal Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date is Monday, October 12th. Universal’s dividend payout ratio is 257.36%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Weiss Ratings lowered shares of Universal from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 2nd. Zacks Research upgraded Universal from a “strong sell” rating to a “hold” rating in a research note on Monday. Two analysts have rated the stock with a Hold rating, According to MarketBeat, the company has a consensus rating of “Hold”.

Trending Headlines about Universal

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Dividend maintained: Universal declared a quarterly dividend of $0.83 per share, equivalent to $3.32 annually and a yield of approximately 6.2%. The dividend is payable November 2 to shareholders of record October 12. Universal Corporation dividend announcement
• Positive Sentiment: Balance-sheet liquidity remains solid: Universal reduced total debt by $55.5 million year over year and reported approximately $1.1 billion in available liquidity as of June 30, potentially helping it navigate weak operating conditions. Universal Q1 results and liquidity
• Neutral Sentiment: Analyst stance improved slightly: Zacks Research upgraded UVV from “strong sell” to “hold,” indicating reduced bearish conviction but not a bullish outlook. Zacks Universal Corporation rating
• Neutral Sentiment: Ingredients leadership transition: Universal announced a planned leadership change in its Ingredients segment. The announcement provides continuity information but did not include a new financial forecast. Universal Ingredients leadership transition
• Negative Sentiment: Results substantially missed expectations: Fiscal Q1 2027 revenue fell 12% to $523.8 million, below the $587 million consensus estimate, while the company reported a loss of $0.18 per share versus expectations for $0.25 of earnings. Universal Q1 earnings miss
• Negative Sentiment: Core tobacco weakness worsened: Tobacco revenue declined 13%, operating income dropped sharply, and management cited lower volumes, prices, reduced carryover-crop sales, tobacco oversupply, ingredients-market headwinds, and high fixed costs at its expanded Lancaster facility. Universal weak Q1 results amid tobacco oversupply

Insider Buying and Selling

In other news, Director Robert C. Sledd sold 2,845 shares of the company’s stock in a transaction that occurred 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 completion of the sale, the director directly owned 11,959 shares of the company’s stock, valued at approximately $647,221.08. This represents a 19.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Aster Capital Management DIFC Ltd boosted its holdings in shares of Universal by 1,634.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 555 shares of the company’s stock worth $29,000 after buying an additional 523 shares during the period. Ankerstar Wealth LLC acquired a new position in Universal during the 4th quarter worth $37,000. EverSource Wealth Advisors LLC lifted its holdings 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 buying an additional 522 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Universal in the fourth quarter valued at about $59,000. Finally, Triumph Capital Management acquired a new position in shares of Universal in the third quarter valued at $63,000. Institutional investors and hedge funds own 81.00% of the company’s stock.

Universal Company Profile

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.