Univar (UNVR) Tops Q4 EPS by 9c, Beats on Revenues; Offers FY18 EPS Guidance Above Consensus

Univar (NYSE: UNVR) reported Q4 EPS of $0.34, $0.09 better than the analyst estimate of $0.25. Revenue for the quarter came in at $1.96 billion versus the consensus estimate of $1.87 billion.

• For the fourth quarter, Univar reported net income of $27.0 million, or $0.19 per share, compared to a net loss of $59.2 million, or ($0.43) per share in the prior year fourth quarter. Earnings per share was adversely impacted by a $36.6 million, or ($0.26) per share charge, related to the U.S. Tax Cuts and Jobs Act enacted on December 22, 2017.
• Adjusted earnings per share for the fourth quarter increased 36.0 percent to $0.34 per share from $0.25 per share in the prior year fourth quarter, driven by higher average selling prices, improved sales force execution, and mix enrichment. Adjusted EBITDA grew 10.4 percent to $148.5 million from $134.5 million in the fourth quarter of last year as a result of higher gross profit and operating expense productivity gains that funded investments in people and digital technologies.

Outlook

In 2018, Univar expects to capitalize on the positive growth momentum it created in 2017 and further advance its key initiatives of Commercial Greatness, Operational Excellence and One Univar, towards achievement of its 2019 and 2021 financial targets. For the full year 2018, the Company expects mid-single digit revenue growth reflecting improvements in sales force execution, higher win/loss ratios, and new supplier authorizations. The Company also expects to continue delivering operating cost productivity gains that will help fund targeted investments in digital technologies and in its sales force. As a result, the Company expects to deliver low double digit percent growth in Adjusted EBITDA and Adjusted earnings per share between $1.60 and $1.80 for the full year. For the first quarter of 2018, the Company expects Adjusted EBITDA growth of around 10 percent.

GUIDANCE:

Univar sees FY2018 EPS of $1.60-$1.80, versus the consensus of $1.52.

For earnings history and earnings-related data on Univar (UNVR) click here.

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