Unilever (NYSE:UL) Issues Earnings Results

Unilever (NYSE:UL - Get Free Report) announced its quarterly earnings results on Tuesday, July 28th. The company reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.84 by ($1.25), reports. The business had revenue of $14.62 billion for the quarter, compared to the consensus estimate of $14.80 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 1.8%

UL traded up $1.16 on Monday, reaching $65.30. 2,961,181 shares of the company's stock were exchanged, compared to its average volume of 4,191,446. Unilever has a twelve month low of $54.75 and a twelve month high of $74.97. The company's 50 day moving average is $61.91 and its 200-day moving average is $61.96.

Analyst Ratings Changes

Several research analysts recently issued reports on UL shares. Zacks Research upgraded Unilever from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 28th. Jefferies Financial Group reissued an "underperform" rating on shares of Unilever in a research report on Monday, July 6th. TD Cowen reissued a "buy" rating on shares of Unilever in a report on Wednesday, July 29th. Finally, Weiss Ratings upgraded Unilever from a "sell (d)" rating to a "hold (c-)" rating in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $65.55.

Institutional Investors Weigh In On Unilever

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC raised its stake in shares of Unilever by 5.4% in the 4th quarter. Brighton Jones LLC now owns 10,572 shares of the company's stock valued at $599,000 after acquiring an additional 539 shares during the period. AQR Capital Management LLC boosted its position in Unilever by 4.7% during the 1st quarter. AQR Capital Management LLC now owns 35,007 shares of the company's stock worth $2,085,000 after purchasing an additional 1,587 shares during the period. Gamco Investors INC. ET AL boosted its position in Unilever by 39.7% during the 2nd quarter. Gamco Investors INC. ET AL now owns 15,848 shares of the company's stock worth $969,000 after purchasing an additional 4,501 shares during the period. Qube Research & Technologies Ltd increased its holdings in Unilever by 70.5% in the 2nd quarter. Qube Research & Technologies Ltd now owns 378,313 shares of the company's stock valued at $23,141,000 after purchasing an additional 156,404 shares in the last quarter. Finally, Sei Investments Co. increased its holdings in Unilever by 17.4% in the 2nd quarter. Sei Investments Co. now owns 427,577 shares of the company's stock valued at $26,155,000 after purchasing an additional 63,376 shares in the last quarter. 9.67% of the stock is currently owned by hedge funds and other institutional investors.

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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