Universal Corp Posts Surprise Q1 Loss as Tobacco Sales Plunge 12%
UVV is trading near its 52-week low of $49.19 (4.3% above the low).
Summary
Universal Corporation swung to a fiscal Q1 adjusted loss of $0.20 per share, missing the lone analyst estimate of a $0.25 profit. Revenue dropped 12% on lower tobacco volumes and prices, driven by oversupply in flue-cured and burley markets and a less favorable product mix in Asia. The ingredients segment also dragged, with high fixed costs at an expanded facility and weak consumer-packaged-goods demand. This follows a Q4 net loss of $43.3 million reported in May, extending a pattern of deteriorating results. Management expects tobacco shipments to be heavily back-half weighted, but near-term visibility is poor with the stock already trading near its 52-week low.
At the time of this announcement, UVV was trading at $51.30 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $49.19 to $59.38. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.