Universal Corporation Declares Quarterly Dividend of $0.83 (NYSE:UVV)

Key Points

• Universal declared a quarterly dividend of $0.83 per share, payable November 2 to shareholders of record October 12. The dividend implies $3.32 in annualized payments and an approximately 6.4% yield, extending the company’s streak of annual increases to 56 years.
• Universal reported a weak quarter, with revenue falling 12% to $523.8 million and a loss of about $0.18 per share, missing analysts’ expectations for $587 million in revenue and $0.25 in EPS.
• Management cited tobacco oversupply, lower volumes and prices, reduced carryover-crop sales, ingredients-market weakness and high fixed costs as key pressures; however, debt declined by $55.5 million year over year and liquidity stood at approximately $1.1 billion.

Universal Corporation (NYSE:UVV - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Investors of record on Monday, October 12th will be given a dividend of 0.83 per share on Monday, November 2nd. This represents a c) annualized dividend and a dividend yield of 6.4%. The ex-dividend date of this dividend is Monday, October 12th.

Universal has raised its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 56 consecutive years.

Universal Price Performance

UVV opened at $52.03 on Thursday. The stock's 50-day moving average price is $52.73 and its 200 day moving average price is $53.30. Universal has a 12-month low of $49.19 and a 12-month high of $59.38. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 40.33, a PEG ratio of 4.09 and a beta of 0.60. The company has a current ratio of 3.49, a quick ratio of 1.66 and a debt-to-equity ratio of 0.42.

Universal (NYSE:UVV - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.43). The firm had revenue of $523.78 million during the quarter, compared to analyst estimates of $587.00 million. Universal had a net margin of 1.12% and a return on equity of 4.43%. As a group, sell-side analysts expect that Universal will post 4.3 earnings per share for the current year.

Key Stories Impacting Universal

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Universal declared a quarterly dividend of $0.83 per share, payable November 2 to shareholders of record October 12. The payment implies a $3.32 annualized dividend and an approximately 6.4% yield, which may appeal to income-focused investors. Universal dividend announcement
• Positive Sentiment: Total debt declined by $55.5 million year over year, while available liquidity was approximately $1.1 billion as of June 30. These figures indicate financial flexibility despite the earnings weakness. Universal first-quarter results
• Neutral Sentiment: Zacks Research upgraded Universal from “strong sell” to “hold,” suggesting the recent decline may already reflect some of the company’s challenges but that analysts do not yet see a strong catalyst for recovery.
• Neutral Sentiment: Universal announced a leadership transition plan for its Ingredients segment. The change could help address operational issues, but its effect on results remains uncertain. Universal Ingredients leadership transition
• Negative Sentiment: Fiscal first-quarter revenue fell 12% to $523.8 million, missing the $587 million consensus estimate. Universal posted a $5 million net loss, or roughly $0.18–$0.20 per share, versus year-ago earnings of $8.5 million, or $0.34 per share, and well below the expected $0.25 EPS profit. Universal earnings miss
• Negative Sentiment: Management cited tobacco oversupply, lower sales volumes and prices, reduced carryover-crop sales, ingredients-market headwinds and high fixed costs at the expanded Lancaster facility. Tobacco operating income dropped sharply, while Ingredients reported an operating loss. Universal weak first-quarter results

About Universal

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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