Unilever (NYSE:UL) Releases Quarterly Earnings Results, Misses Estimates By $0.93 EPS

Key Points

• Unilever missed quarterly estimates, reporting $0.92 EPS versus the $1.85 consensus and revenue of $14.62 billion compared with expectations of $29.49 billion.
• Underlying sales growth accelerated to 5.8%, driven by 5.5% volume growth, prompting management to raise its full-year outlook to 4%–6% underlying sales growth. Operating margin, free cash flow, the buyback program, and dividend also improved.
• Cost and category pressures remain: inflation is expected to total roughly €800 million–€900 million, while Foods—particularly U.S. condiments—skincare, and oral care underperformed. Analysts collectively rate the stock “Hold,” with a $65.55 consensus price target.

Unilever (NYSE:UL - Get Free Report) issued its earnings results on Tuesday. The company reported $0.92 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.85 by ($0.93), FiscalAI reports. The firm had revenue of $14.62 billion during the quarter, compared to analyst estimates of $29.49 billion.

Here are the key takeaways from Unilever's conference call:

• Volume-led growth accelerated: second-quarter underlying sales growth reached 5.8%, with volume up 5.5%—Unilever’s strongest quarterly volume performance since 2010. Power brands, Home Care, emerging markets, and North America were key contributors.
• Management upgraded its full-year outlook to 4%–6% underlying sales growth, including approximately 3% volume growth, and expects second-half growth of 4%–5%, led by pricing.
• Underlying operating margin expanded 10 basis points to 20.3% despite inflation and currency headwinds, while free cash flow rose €0.5 billion to €1.5 billion. The company also completed its €1.5 billion buyback and increased the dividend by 3%.
• Cost pressures remain significant, with full-year inflation estimated at roughly €800 million–€900 million, centered around €850 million. Higher pricing in the second half is expected to create some volume sensitivity and could pressure consumer demand.
• Foods underperformed, particularly U.S. condiments, where Hellmann’s lost share in premium mayonnaise amid competition from avocado-oil products. Management also flagged weaker legacy skincare brands, softer oral-care performance, and potential Brazil-related customer destocking in the fourth quarter.

Unilever Stock Up 0.6%

Unilever stock opened at $61.28 on Tuesday. Unilever has a 12-month low of $54.75 and a 12-month high of $74.97. The firm's fifty day moving average price is $59.32 and its 200 day moving average price is $62.27.

Analyst Upgrades and Downgrades

UL has been the topic of several research reports. Weiss Ratings lowered shares of Unilever from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, May 29th. Zacks Research downgraded shares of Unilever from a "hold" rating to a "strong sell" rating in a research note on Monday, June 29th. Jefferies Financial Group reissued an "underperform" rating on shares of Unilever in a research report on Monday, July 6th. Royal Bank Of Canada raised shares of Unilever from an "underperform" rating to a "sector perform" rating in a research note on Tuesday, April 21st. Finally, DZ Bank upgraded shares of Unilever from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 8th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Unilever currently has a consensus rating of "Hold" and a consensus price target of $65.55.

Institutional Trading of Unilever

Several large investors have recently modified their holdings of UL. Palisade Asset Management LLC acquired a new position in shares of Unilever in the third quarter worth about $25,000. Quattro Advisors LLC acquired a new stake in Unilever during the 4th quarter valued at approximately $33,000. Measured Wealth Private Client Group LLC purchased a new stake in Unilever during the 3rd quarter worth approximately $31,000. Truvestments Capital LLC acquired a new position in shares of Unilever in the 4th quarter valued at approximately $36,000. Finally, Jessup Wealth Management Inc acquired a new position in shares of Unilever in the 4th quarter valued at approximately $44,000. 9.67% of the stock is currently owned by institutional investors and hedge funds.

About Unilever

Unilever PLC is a global consumer goods company with roots dating back to the early 20th century, formed from the merger of the British firm Lever Brothers and the Dutch company Margarine Unie. The company develops, manufactures and markets a broad portfolio of branded products in personal care, home care and foods and refreshments. Unilever's corporate structure and listings reflect its long history in both the United Kingdom and the Netherlands, and it operates at scale across diverse consumer markets worldwide.

Unilever's business is organized around major product categories—Beauty & Personal Care, Home Care and Foods & Refreshment—and includes numerous well-known consumer brands across those categories.

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