Universal (NYSE:UVV) Releases Quarterly Earnings Results, Misses Expectations By $0.57 EPS

by · The Markets Daily

Universal (NYSE:UVV – Get Free Report) announced its quarterly earnings results on Monday. The company reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.92 by ($0.57), FiscalAI reports. Universal had a net margin of 2.93% and a return on equity of 6.49%. The company had revenue of $861.29 million for the quarter, compared to the consensus estimate of $927.20 million.

Here are the key takeaways from Universal’s conference call:

  • Company said Universal Ingredients’ value‑added sales are growing but margins were squeezed by higher fixed costs from recent investments, tariff impacts and CPG weakness, with ingredients operating income down to $1.4M YTD and a Q3 operating loss of $0.1M.
  • The tobacco segment remained resilient with solid sales and near‑historic results despite declines versus an “extraordinary” FY25, and management warned the market is shifting from undersupply to oversupply (unsold flue‑cured and Burley stock ~102 million kilos).
  • Universal refinanced and upsized its senior unsecured credit facility by $250M, boosting liquidity availability to about $917M and improving financial flexibility while net debt was $995M at Dec 31, 2025.
  • The company announced the appointment of Steven S. Diel as CFO effective April 1, citing his financial and strategic experience to support execution of growth plans.
  • Management highlighted sustainability progress — renewable electricity use rose nearly six‑fold to ~17.7% of global electricity and the company reaffirmed science‑based targets and a net‑zero by 2050 commitment.

Universal Stock Performance

NYSE UVV opened at $51.64 on Wednesday. Universal has a 52-week low of $49.96 and a 52-week high of $67.33. The company has a fifty day moving average of $54.28 and a 200-day moving average of $54.06. The company has a market capitalization of $1.29 billion, a P/E ratio of 15.23, a P/E/G ratio of 2.72 and a beta of 0.66. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.06 and a current ratio of 2.91.

Universal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, May 4th. Stockholders of record on Wednesday, April 15th will be given a dividend of $0.82 per share. The ex-dividend date is Wednesday, April 15th. This represents a $3.28 annualized dividend and a dividend yield of 6.4%. Universal’s dividend payout ratio (DPR) is 96.76%.

Institutional Investors Weigh In On Universal

Hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. raised its holdings in shares of Universal by 163.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 24,301 shares of the company’s stock valued at $1,358,000 after buying an additional 15,074 shares in the last quarter. Intech Investment Management LLC grew its position in Universal by 20.7% during the first quarter. Intech Investment Management LLC now owns 24,070 shares of the company’s stock valued at $1,349,000 after acquiring an additional 4,124 shares during the last quarter. Lazard Asset Management LLC raised its stake in shares of Universal by 1,457.6% during the second quarter. Lazard Asset Management LLC now owns 21,168 shares of the company’s stock worth $1,232,000 after acquiring an additional 19,809 shares in the last quarter. Balyasny Asset Management L.P. bought a new stake in shares of Universal in the 2nd quarter worth approximately $1,036,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Universal in the 3rd quarter worth approximately $709,000. Institutional investors own 81.00% of the company’s stock.

Analyst Upgrades and Downgrades

UVV has been the topic of several recent analyst reports. Zacks Research cut shares of Universal from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Weiss Ratings cut shares of Universal from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Universal currently has a consensus rating of “Hold”.

Check Out Our Latest Research Report on Universal

More Universal News

Here are the key news stories impacting Universal this week:

  • Positive Sentiment: Universal named Steven S. Diel as Senior VP & Chief Financial Officer effective April 1, 2026; company emphasizes his 25+ years of finance and strategy experience, which investors may view as strengthening financial execution and strategic planning. Universal Corporation Appoints Steven S. Diel as Chief Financial Officer
  • Positive Sentiment: Company press release highlights “solid performance” in tobacco operations and provides nine-month and Q3 commentary that management says supports stability across core businesses—this can help offset concern from the headline miss. Universal Corporation Reports Nine Month and Third Quarter 2026 Results
  • Neutral Sentiment: Full Q3 earnings call transcript and highlight recaps were published; read these for management’s color on margins, geographic mix, working capital and outlook (important for judging whether the miss is transitory). Q3 2026 Earnings Call Highlights
  • Neutral Sentiment: Multiple transcripts (Seeking Alpha, MSN, Yahoo) are available for investors who want line-by-line commentary from the call; these may clarify capital allocation and any revised guidance. Earnings Call Transcript
  • Negative Sentiment: Q3 EPS of $1.35 missed the consensus ($1.92) and fell from $2.37 a year ago; revenue of $861.29M also missed estimates (~$927.2M). The earnings and revenue misses are the primary near-term negative catalyst. Q3 Earnings and Revenues Miss Estimates
  • Negative Sentiment: Profitability metrics showed compression (net margin ~3.74%, ROE ~8.24%), which may pressure valuation until consistent recovery or clearer guidance on cost/volume improvements is provided. Earnings Snapshot & Metrics

Universal Company Profile

(Get Free Report)

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.

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