UVV

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Universal (UVV) is back in focus after reporting first quarter results for the period ended June 30, 2026. The company also announced a fresh dividend declaration that investors will likely weigh against the latest loss figures. See our latest analysis for Universal. The first quarter loss and dividend affirmation have come alongside softer trading in Universal’s stock. The share price is $50.84 after a 90 day share price return that declined 5.15%, while the 5 year total shareholder return is 40.44%, which points to longer term holders still being ahead. If this earnings update has you rethinking where you look for opportunities, it can help to broaden your search and check out 19 top founder-led companies Universal now sits at $50.84 after a weak quarter and a maintained dividend, which leaves a simple question: Does the current risk reward still lean in favor of buyers, or has the balance shifted? With Universal trading at $50.84 against a most followed narrative fair value of $78.00, the current setup casts that valuation gap in sharp focus. Read the complete narrative. Want to understand why this narrative sees so much upside in Universal? It leans on steady top line assumptions, fatter margins, and a richer earnings multiple. The full story is in how those pieces fit together over time, not in any single headline number. Result: Fair Value of $78.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to weigh risks such as potential oversupply in core tobacco crops and ongoing margin pressure in the Ingredients Operations segment, which could challenge this Universal narrative. Find out about the key risks to this Universal narrative. The narrative fair value for Universal leans on future earnings and a richer P/E multiple. However, on current numbers the picture is different. Universal trades on a P/E of 66.2x, which is higher than the peer average of 30.8x, the Global Tobacco industry at 12.3x, and even its own fair ratio of 51.7x. That gap points to meaningful valuation risk if expectations or sentiment cool. Before leaning too heavily on any single metric, it is worth asking how comfortable you are with paying a premium P/E that already bakes in a lot of future success, while other investors may be using very different yardsticks for Universal. See what the numbers say about this price — find out in our valuation breakdown. If this mix of optimism and concern around Universal has you on the fence, it makes sense to look at the details yourself and decide quickly. Start by weighing the 2 key rewards and 4 important warning signs. If Universal has sparked fresh thinking about your portfolio, do not stop here. Use the Simply Wall St Screener to quickly surface new stock ideas that fit your goals. Target potential mispricings by scanning companies that combine quality fundamentals with attractive valuations through the 52 high quality undervalued stocks. Strengthen your income stream by reviewing a curated set of higher yielding opportunities using the 8 dividend fortresses. Dial down overall portfolio risk by focusing on companies that score well on resilience through the 83 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UVV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Universal Corporation? Here are five stocks we like better. Universal reported a weak fiscal Q1 2027: Revenue fell 12% year over year to $524 million, operating income dropped to $2.3 million, and the company posted a $5 million net loss. Tobacco results were hurt by oversupply and delayed customer purchases: Tobacco revenue declined 13% to $437 million, though management expects shipments and demand to improve in the second half of the fiscal year. The ingredients business remained under pressure, posting an operating loss amid consumer-market headwinds and high fixed costs. Universal plans $55 million–$65 million in fiscal 2027 capital expenditures while maintaining focus on liquidity, dividends and operational investment. 2 Stocks to Watch as the Quantum Space Gets More Crowded Universal (NYSE:UVV) reported lower revenue and a net loss in the first quarter of fiscal 2027, as slower customer purchasing in an oversupplied leaf tobacco market and continued pressure in its ingredients business weighed on results. Consolidated revenue declined 12% year over year to $524 million, while operating income fell to $2.3 million from $33.8 million in the prior-year quarter. The company posted a net loss attributable to Universal of $5 million, compared with net income of $8.5 million a year earlier. → No Hangover: Revisiting Microsoft One Week After Earnings The Trade Desk Raised Forecasts Means Ad Spending is Back, Maybe Chairman, President and CEO Preston Wigner said the first-quarter performance reflected conditions the company had anticipated, including a return to more typical seasonal patterns in its leaf tobacco business following what he described as an exceptional first quarter last year. Universal's tobacco operations generated first-quarter revenue of $437 million, down 13% from the prior-year period. Segment operating income declined to $3.5 million from $35.7 million a year earlier. → MarketBeat Week in Review – 08/03 - 08/07 Disney Stock Analysis, Insights and Outlook Chief Financial Officer Steve Diel said the company’s first fiscal quarter is typically seasonally slow, but the effect was more pronounced this year as customers delayed purchasing decisions amid oversupply in flue-cured and burley tobacco markets. He said Universal views the change as a timing issue and that expected customer demand for the full year remains consistent with its initial sales plan. Diel also cited lower carryover crop sales, a less favorable product mix and a $4.4 million negative operating-income variance from foreign-currency movements as factors affecting year-over-year comparisons. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Wigner said shipments are expected to be weighted toward the second half of fiscal 2027. He said the company is focused on disciplined purchasing, monitoring green tobacco trends and maintaining appropriate inventory levels while navigating the oversupplied markets. During the question-and-answer session, Wigner said farmer pricing has declined in most markets as expected amid the surplus. He said the company’s global sourcing operations, customer relationships and regional teams position it to serve customer needs and potentially gain market share. Universal estimated unsold flue-cured and burley stocks at approximately 180 million kilograms as of June 30, an increase of about 11 million kilograms from March 31. Diel said uncommitted inventory levels had declined since June 30 and that the company expects them to return to its 20% target as the season progresses. On dark air-cured tobacco, Wigner said wrapper demand remains strong, while non-wrapper tobacco remains generally oversupplied. He said Universal has introduced sales and inventory-management initiatives intended to reduce inventory, convert wrapper and non-wrapper stock to cash, limit purchases of lower-demand non-wrapper tobacco and support margin optimization. Wigner said he would not expect the large inventory write-downs the company recorded last year. Universal’s ingredients operations reported revenue of $87 million, down 3% from the prior-year quarter. The segment posted an operating loss of $700,000, compared with operating income of $1.7 million a year earlier. Diel attributed the performance to persistent consumer-market headwinds and high fixed costs associated with growth investments. He said the company remains confident in its improvement plan but expects tangible progress to take time because product development cycles in the ingredients business are relatively long. Wigner said Universal remains committed to the ingredients platform as a long-term growth engine. The company is pursuing stronger commercial execution, higher facility utilization, greater operational and financial efficiency, and more profitable volume across its product portfolio. He pointed particularly to the Lancaster, Pennsylvania campus, where the company has expanded capacity and capabilities. Wigner said utilization at the newer portion of the campus remains below the level Universal wants, though he did not provide a percentage figure. He said efforts to improve the segment are expected to continue through the next fiscal year. As of June 30, Universal’s net debt stood at slightly more than $1 billion, approximately $52 million below the level a year earlier. Diel said the decrease primarily reflected lower working-capital usage resulting from crop-purchase timing and lower green tobacco prices. The company had approximately $1.1 billion of liquidity availability, including cash and capacity under committed and uncommitted credit lines. Diel said working capital should decline from recent years because of lower green tobacco purchase prices, although quarterly levels will depend on sales timing, shipments and carryover crop levels. Interest expense is also expected to decline somewhat from last year due to slower purchasing activity and potentially lower working-capital needs. Universal expects capital expenditures of $55 million to $65 million during fiscal 2027. Diel said spending this year is more focused on tobacco operations across South America, Africa and Asia, including growth projects, facility efficiencies and automation. He said the company’s capital-allocation priorities remain investing in tobacco operations, supporting the dividend, growing the ingredients segment and, lastly, share repurchases. The company repurchased shares during the quarter primarily to offset dilution from equity compensation, Diel said. Universal also said it has begun receiving tariff refunds and is working with affected customers on how those funds may be managed. Looking ahead, Wigner said Universal is also assessing how forecasted El Niño conditions could affect crop supply in certain regions. He said customers are considering potential impacts on next season’s crops, which could create demand for additional volumes during the current year. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Universal Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

RICHMOND, Va., August 05, 2026--(BUSINESS WIRE)--Universal Corporation (NYSE:UVV) ("Universal" or the "Company"), a global business-to-business agriproducts company, today announced financial results for the quarter ended June 30, 2026. Preston D. Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, "We are starting fiscal year 2027 with confidence in the long-term strategic direction of our company. We are focused on creating sustainable value through disciplined execution across our businesses. In tobacco, we believe that our long-standing market expertise and measured approach position us well to navigate current oversupply conditions, make prudent buying decisions, and be a trusted, full-service partner to our customers. In ingredients, we are leveraging our platform growth investments and focusing on improving commercial execution, facility utilization, and financial and operational efficiencies. We expect certain of our improvement efforts to continue through our next fiscal year." Mr. Wigner continued, "Our first fiscal quarter results reflected the expected timing and market dynamics in our tobacco business, in comparison to our exceptional first quarter results in the prior fiscal year. Purchasing activity was slower as we and our customers evaluated green tobacco price trends amid oversupply conditions in flue-cured and burley markets and monitored potential weather impacts on next season’s crops. We are pleased with our current customer indications and commitments, and we expect customer demand to remain consistent with our fiscal year sales plan. In our ingredients business, revenue was down slightly from the prior year’s quarter, and results continued to be negatively affected by persistent consumer market headwinds, high fixed costs at our expanded Lancaster facility, and longer-than-anticipated product development cycles. We continued to implement our initiatives to strengthen the ingredients platform for long-term success, which include enhancements to leadership, systems, operational capabilities, and commercial execution. During the fiscal quarter, our liquidity position remained strong, and our debt levels were down due to reduced working capital usage, driven by tobacco crop purchase timing and lower green tobacco prices." First Quarter Fiscal 2027 Highlights Consolidated Results Revenue down $70.0 million to $523.8 million primarily on lower tobacco sales volumes and prices. Operating income down $31.5 million to $2.3 million on a less favorable product mix and lower carryover crop sales in the Tobacco Operations segment and continued market headwinds and high fixed costs in the Ingredients Operations segment. Tobacco Operations Segment The first fiscal quarter is historically a slow quarter for our tobacco business. Revenue down $67.6 million, or 13%, on lower tobacco sales volumes and prices. Segment operating income down $32.2 million largely on product mix and lower sales of carryover crop tobacco as well as unfavorable foreign currency comparisons. Tobacco sales volumes down 9% on lower consolidated sales of carryover crop tobacco. Tobacco sales prices down 6% on product mix and lower green tobacco prices. Tobacco Operations segment results reflected: Uncommitted tobacco inventory levels at 24% as of June 30, 2026, were below March 31, 2026 levels, and remained slightly above our target range due to delayed customer purchase commitments. Tobacco shipments are expected to be heavily weighted to the second half of fiscal year 2027 and to follow historical shipping patterns. Ingredients Operations Segment Revenue down $2.4 million, as sales of certain products were negatively impacted by market headwinds. Operating income down $2.4 million on product mix and high fixed costs from our expanded production facility, as well as inventory write-downs. Market headwinds included persistent weakness in the consumer-packaged-goods industry, supply constraints, particularly tight apple markets in the Pacific Northwest, inflationary pressures, and tariff volatility. Ongoing focus on strengthening commercial execution, improving facility utilization, and enhancing financial and operational efficiencies to offset high fixed operating costs and improve performance at our Lancaster facility. Select Balance Sheet Items, Liquidity, and Debt Lower working capital usage on timing of tobacco crop purchases. Total debt down $55.5 million at June 30, 2026, compared to June 30, 2025. Net debt (non-GAAP) down $51.6 million at June 30, 2026, compared to June 30, 2025. Interest expense down $1.3 million in the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. Approximately $1.1 billion of available liquidity, consisting of cash and committed and uncommitted credit lines, as of June 30, 2026. Additional Items Restructuring and impairment costs of $1.1 million in the quarter ended June 30, 2025. Income tax benefit of approximately $4.5 million, or 35% of the pre-tax loss, in the quarter ended June 30, 2026, compared to an income tax expense of $5.3 million and consolidated effective tax rate of 27% in the quarter ended June 30, 2025. Sustainability Update Universal continues to strengthen the foundation of its business through investments in environmental, health, and safety capabilities that support long-term sustainability and operational resilience. Recent initiatives include the implementation of an enhanced global safety management software platform and a comprehensive Global EHS Management System. The new systems improve visibility across operations, support greater consistency and accountability, and strengthen the Company's approach to risk management across its global footprint. By reinforcing a culture of safety, transparency, and continuous improvement, these investments help position Universal for long-term success. Other Items Reconciliation of Certain Non-GAAP Financial Measures Adjusted operating income (loss), adjusted net income (loss) attributable to Universal Corporation, adjusted diluted earnings (loss) per share, and the total for segment operating income (loss) are non-GAAP financial measures. These measures are not financial measures calculated in accordance with generally accepted accounting principles ("GAAP") and should not be considered as substitutes for operating income (loss), net income (loss) attributable to Universal Corporation, diluted earnings (loss) per share, cash from operating activities or any other operating or financial performance measure calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of adjusted operating income (loss) to consolidated operating (income), adjusted net income (loss) attributable to Universal Corporation to consolidated net income (loss) attributable to Universal Corporation and adjusted diluted earnings (loss) per share to diluted earnings (loss) per share are provided below. In addition, a reconciliation of the total for segment operating income (loss) to consolidated operating income (loss) is provided in Note 3. "Segment Information" to the consolidated financial statements. Management evaluates the consolidated Company and segment performance excluding certain significant charges or credits. Management believes these non-GAAP financial measures, which exclude items that it believes are not indicative of its core operating results, can provide investors with important information that is useful in understanding its business results and trends. Net debt, net capitalization, and net debt to net capitalization ratio are also non-GAAP financial measures. These measures are not financial measures calculated in accordance with GAAP and should not be considered substitutes for total debt, total capitalization, total debt to total capitalization ratio, or any other operating or financial performance measures calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of net debt to total debt and net capitalization to total capitalization are provided below. Management believes these non-GAAP measures are meaningful indicators of liquidity and financial position. The following tables set forth certain non-recurring items included in reported results to reconcile adjusted operating income to consolidated operating income and adjusted net income (loss) attributable to Universal Corporation to net income (loss) attributable to Universal Corporation: The following table reconciles total debt to net debt and net capitalization: Investor Conference Call At 10:00 a.m. (Eastern Time) on August 6, 2026, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting www.universalcorp.com at that time. A replay of the webcast will be available at that site through November 6, 2026. About Universal Corporation Universal Corporation (NYSE:UVV) is a global agricultural company with over 100 years of experience supplying products and innovative solutions to meet our customers’ evolving needs and precise specifications. Through our diverse network of farmers and partners across more than 30 countries on five continents, we are a trusted provider of high-quality, traceable products. We leverage our extensive supply chain expertise, global reach, integrated processing capabilities, and commitment to sustainability to provide a range of products and services designed to drive efficiency and deliver value to our customers. For more information, visit www.universalcorp.com. CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Among other things, these statements include statements made in Mr. Wigner’s quotations, statements regarding expectations with respect to our fiscal year 2027 performance, our strategic plans, ingredients business, tobacco business, including expectations with respect to size, shipments and sales and purchases of tobacco crops. These forward-looking statements are generally identified by the use of words such as we "expect," "believe," "anticipate," "could," "should," "may," "plan," "will," "predict," "estimate," and similar expressions or words of similar import. These forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results, performance, or achievements to be materially different from any anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: product purchased not meeting quality and quantity requirements; reliance on a few large customers; anticipated levels of demand for and supply of our products and services; tobacco growing conditions and customer requirements; major shifts in customer requirements for leaf tobacco; higher inflation rates, tariffs and other pressures on costs; weather and other conditions; exposure to certain legal, regulatory and financial risks related to climate change; industry-specific risks related to our plant-based ingredients businesses; disruption of our supply chain for our plant-based ingredients; success in pursuing strategic investments or acquisitions and integration of new businesses and the impact of these new businesses on future results; our ability to maintain effective information technology systems and safeguard confidential information; our inability to attract, develop, retain, motivate, and maintain good relationships with our workforce; our dependence on a seasonal workforce; epidemics, pandemics or similar widespread public health concerns; government efforts to regulate the production and consumption of tobacco products; government actions on the sourcing of leaf tobacco; economic and political conditions in the countries in which we and our customers operate, including the ongoing impacts from international conflicts; sustainability considerations from governments and other stakeholders; changes in tax laws in the countries where we do business; failure of our customers or suppliers to repay extensions of credit; changes in exchange rates; changes in interest rates; and low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions. Please also refer to the risks and uncertainties as discussed in Part I, Item 1A. "Risk Factors" of Universal’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026, and related disclosures in other filings that Universal files with the Securities and Exchange Commission (the "SEC"), which are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. Universal cautions investors not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made, and it undertakes no obligation to update any forward-looking statements made, except as required by law. NOTE 1. BASIS OF PRESENTATION Universal Corporation, which together with its subsidiaries is referred to herein as "Universal" or the "Company," is a global business-to-business agri-products supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026. NOTE 2. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: NOTE 3. SEGMENT INFORMATION Management regularly evaluates the Company’s global business activities, including product and service offerings to its customers, as well as senior management’s operational and financial responsibilities. Assessments include an analysis of how its Chief Operating Decision Maker ("CODM") measures business performance and allocates resources. As a result of this analysis, senior management has determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also used in the manufacture of next generation tobacco products that are intended to provide consumers with an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing for tobacco customers. A substantial portion of the Company’s Tobacco Operations’ revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, dehydrated products, botanical extracts, and flavorings. Customers for the Ingredients Operations segment include large multinational food and beverage companies, smaller independent manufacturers, and retail organizations. FruitSmart, Inc. ("FruitSmart"), Silva International, Inc. ("Silva"), and Shank’s Extracts, LLC d/b/a Universal Ingredients–Shank’s ("Universal Ingredients–Shank’s") are the primary operations for the Ingredients Operations segment. FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally. Silva procures dehydrated vegetables, fruits, and herbs from around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products. Universal Ingredients–Shank’s offers a diversified portfolio of botanical extracts, distillates, natural flavors, and color for industrial and private label customers worldwide, and is known for their significant vanilla expertise. Universal Ingredients–Shank’s is also equipped to offer customers custom bottling and packaging for their products. Universal incurs corporate overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of projected annual financial and operational performance, including volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The CODM, which has been identified as a group comprised of the Company’s Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, currently evaluates the performance of the operating segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates ("Segment Operating Income"). The CODM also uses Segment Operating Income for planning, forecasting, and allocating capital and other resources to the operating segments. Reportable segment data as of, or for, each period presented in the consolidated statements of income and comprehensive income, the consolidated balance sheets, and the consolidated statements of cash flows is as follows: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805603722/en/ Contacts Universal Corporation Investor Relations:Phone: (804) 359-9311Fax: (804) 254-3584Email: [email protected]

Turning Point Brands (TPB) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.17%. A quarter ago, it was expected that this company would post earnings of $0.68 per share when it actually produced earnings of $0.76, delivering a surprise of +11.76%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Turning Point Brands, which belongs to the Zacks Tobacco industry, posted revenues of $142.96 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.51%. This compares to year-ago revenues of $116.63 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Turning Point Brands shares have lost about 25.8% since the beginning of the year versus the S&P 500's gain of 11%. While Turning Point Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Turning Point Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $134.15 million in revenues for the coming quarter and $1.97 on $526.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Universal Corp. (UVV), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This leaf tobacco merchant is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -34.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Universal Corp.'s revenues are expected to be $587 million, down 1.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report Universal Corporation (UVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Altria (MO) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.24 per share when it actually produced earnings of $1.32, delivering a surprise of +6.45%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Altria, which belongs to the Zacks Tobacco industry, posted revenues of $5.36 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $5.29 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Altria shares have added about 29.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While Altria has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Altria was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $5.31 billion in revenues for the coming quarter and $5.70 on $20.55 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Universal Corp. (UVV), has yet to report results for the quarter ended June 2026. This leaf tobacco merchant is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -34.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Universal Corp.'s revenues are expected to be $587 million, down 1.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO) : Free Stock Analysis Report Universal Corporation (UVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Philip Morris just posted a stellar quarter, but instead of raising its forecast, it’s plowing the cash into its U.S. business, and the reason why dominated the call. Philip Morris International (PM) stock is trading near its 52-week high, rewarding investors with strong returns. So when the company reported a blowout second quarter, with organic revenue up 8% and operating income up 11%, the natural expectation was a guidance raise. Instead, management held its full-year forecast steady, and the entire earnings call Q&A pivoted to one central question: is the company’s plan to plow that outperformance into its U.S. ZYN business an offensive move from a position of strength, or a costly defensive scramble? A Beat-and-Hold Is The New Beat-and-Raise The most pointed challenge from analysts centered on that decision to maintain guidance. A strong first half that doesn’t lift the full-year outlook implies a weaker second half, a new cost, or both. It’s the kind of math that makes shareholders nervous, and it was the first issue raised. Management’s answer was direct: this is a strategic choice. The outperformance from the international and combustible businesses created the “additional capacity to invest.” After what the company called “several quarters of frustration” in the U.S., it sees a perfect window to act. With a pipeline of new ZYN products, a major new marketing campaign, and recent favorable regulatory news, management believes it is the “right moment to accelerate U.S. investment.” The response framed the spending not as a problem to be fixed, but as an opportunity to be seized. The Price Answer Was More Strategy Than Number The follow-up concern was what “investment” really means for ZYN. The word can be a corporate euphemism for profit-crushing price cuts to regain market share. Analysts pressed on how the company plans to optimize ZYN’s premium positioning in a competitive market. The answer was more confident than specific on the numbers, but clear on the strategy. Management repeatedly stated that ZYN “is and will remain the premium leader of the market.” The mechanism for competing on price appears to be through new products, not by discounting the flagship brand. The company is launching its ZYN Ultra line at a “lower per-pouch price,” allowing it to fight for value-conscious consumers without devaluing its core offering. It’s a plan to segment the market rather than surrender its high-end pricing. What To Watch: U.S. Share Or U.S. Margin? In the end, management made a convincing case for why it’s spending more in the U.S. The international business is a powerful engine, and reinvesting its excess profits into the biggest growth market makes strategic sense. The company is funding this push from strength, not weakness. What remains an open question is how efficiently that capital will be spent. The bull case now rests on execution. The one thing to watch next quarter is the U.S. segment's numbers. A simple uptick in ZYN’s market share won’t be enough to settle the debate. The real proof will be whether that share gain comes with stable or expanding gross margins. That would confirm the new spending is creating profitable growth, not just buying market share at any cost. One step out from the single name: a consumer staples ETF like XLP spreads these company-specific questions across the whole consumer staples group, so no one answer can sink you. It is still a concentrated bet on that one theme, though, which is exactly the gap the portfolio below closes. Where One Stock's Open Questions Fit A Bigger Plan Every stock carries unresolved questions like these, and no earnings call settles all of them. Owning a sector fund spreads that risk across more names, but it is still one bet on one theme: when the theme wobbles, the whole basket wobbles with it. The Trefis High Quality (HQ) Portfolio takes the next step out. It holds about 30 businesses diversified across sectors, selected not on a theme but on quality itself: consistent cash generation, strong margins, and resilient balance sheets. No single unresolved debate, and no single industry, carries your result. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Track the debates on names you like, on top of a core built on quality rather than any one story.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Fiscal year 2026 performance was characterized by a significant market shift from undersupply to oversupply in certain tobacco styles, impacting overall volumes and margins. The tobacco segment's operating income decline was primarily driven by higher inventory write-downs of non-wrapper dark air-cured tobacco, totaling $43 million compared to a five-year average of $14 million. Management attributed the Ingredients segment's lower profitability to the Shanks business, which faced higher fixed and operating costs following recent growth investments and a slower-than-expected product pipeline build. A $41 million non-cash goodwill impairment was recorded for the Shanks operation, reflecting market pressures on revenues and a lag in executing the commercial strategy relative to initial acquisition expectations. Despite broader segment challenges, the FruitSmart and Silva businesses within the Ingredients platform performed in line with management's expectations. The company maintains that its leaf tobacco business remains durable across market cycles due to its global geographic footprint and deep experience in managing crop volatility. Strategic focus in the Ingredients segment is shifting toward improving facility utilization and strengthening commercial execution to convert technical capabilities into sustained revenue. Management expects uncommitted tobacco inventory to return to the target range of 10% to 20% during fiscal year 2027 as early-season buying in Brazil and Africa progresses. The outlook for fiscal year 2027 assumes continued oversupply in flue-cured and burley tobacco markets, which management intends to navigate by leveraging their ability to be more selective on grades and pricing. Ingredients strategy for the coming year focuses on navigating persistent inflationary pressures and potential tariff fluctuations that impact customer demand and sourcing costs. The company has implemented a leadership realignment at Shanks to enhance financial and operational efficiency, aiming to leverage underutilized capacity for future solutions-based offerings. Capital allocation priorities remain unchanged, focusing on investing in tobacco market share, growing the ingredients platform, and maintaining the 56-year streak of annual dividend increases. Recorded a $41 million non-cash goodwill impairment charge related to the 2021 acquisition of Shanks due to delayed commercial execution and market headwinds. Inventory write-downs in the tobacco segment reached $43 million, significantly exceeding historical averages due to specific weakness in non-wrapper dark air-cured tobacco. Net debt increased to $845 million as of March 31, 2026, driven by higher working capital requirements for purchasing a larger tobacco crop. The company transitioned to a new CFO, Steven S. Diel, effective April 1, 2026, emphasizing a focus on disciplined capital allocation and free cash flow generation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed confidence that the $43 million in write-downs taken in Q4 followed a thorough review and that current inventory positions are well-aligned with market dynamics. Uncommitted inventory is expected to normalize within the 10% to 20% range during fiscal year 2027 as recent purchases from Brazil begin to move. Preston Wigner noted that oversupply provides the company with more flexibility and 'intentionality' in buying specific grades at better prices compared to undersupplied years. Larger global crops offer additional benefits, such as increased opportunities for third-party processing revenue. CFO Steven Diel reaffirmed the four-pillar strategy: investing in tobacco, increasing dividends, exploring ingredients growth, and returning capital via buybacks. The company is currently in a phase of 'earning the right for future growth' by focusing on organic returns at Shanks before pursuing further M&A in the ingredients space.

Interested in Universal Corporation? Here are five stocks we like better. Universal’s fiscal 2026 results weakened despite modest revenue growth, as fourth-quarter revenue rose 2% to $715 million but operating income swung to a $15 million loss and net loss widened to $43 million. Full-year operating income fell to $169 million from $233 million, largely due to a non-cash goodwill impairment and inventory write-downs. The tobacco segment was hurt by dark air-cured inventory write-downs, with quarterly revenue up 3% but operating income down to $27 million from $46 million. Management said it reviewed inventory carefully and expects uncommitted inventory to move back toward its target range in fiscal 2027. Management remains focused on dividends, liquidity and future growth even as it expects ongoing tobacco oversupply in fiscal 2027. Universal said it has more than $1.2 billion in liquidity and highlighted its 56th consecutive annual dividend increase, while also pushing commercial and operational improvements in ingredients. 2 Stocks to Watch as the Quantum Space Gets More Crowded Universal (NYSE:UVV) said its fiscal 2026 results were pressured by a non-cash goodwill impairment in its ingredients business and higher inventory write-downs tied mainly to non-wrapper dark air-cured tobacco, even as management described the company’s core flue-cured and burley tobacco operations as solid. Chairman, President and CEO Preston D. Wigner told investors on the company’s fourth-quarter earnings call that Universal operated in a market that “shifted meaningfully from the prior year,” with oversupply in certain tobacco styles and continued headwinds in ingredients weighing on volumes and margins. → Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move The Trade Desk Raised Forecasts Means Ad Spending is Back, Maybe “Our fiscal year 2026 performance reflected solid execution across much of our business,” Wigner said. “However, our financial results for the fourth quarter and fiscal year were impacted by a non-cash goodwill impairment related to our Universal Ingredients Shank’s operation and by inventory write-downs primarily related to non-wrapper dark air-cured tobacco.” Chief Financial Officer Steven S. Diel, who was appointed to the role effective April 1, said consolidated revenue for the fourth quarter was $715 million, up 2% from the same period a year earlier. Full-year consolidated revenue was $2.9 billion, down slightly from what Diel called an “exceptional” fiscal 2025. → Record Revenue, Rising Dividends—So Why Aren't Analysts Saying Buy? Disney Stock Analysis, Insights and Outlook The company reported a fourth-quarter operating loss of $15 million, compared with operating income of $43 million in the prior-year quarter. For the full year, operating income fell to $169 million from $233 million in fiscal 2025. Net loss attributable to Universal was $43 million in the fourth quarter, compared with net income of $9 million a year earlier. Full-year net income declined to $33 million from $95 million in fiscal 2025. → Zscaler Stock Drops 30%: Why the Dip Is a Buy Opportunity Diel said the lower earnings were driven primarily by two factors: weaker profitability and a $41 million non-cash goodwill impairment at Shank’s within the ingredients segment, and higher inventory write-downs along with weaker performance in the non-wrapper dark air-cured tobacco business. Universal’s tobacco segment generated fourth-quarter revenue of $632 million, up 3% from the prior-year quarter. For the full year, tobacco revenue was $2.6 billion, down slightly from fiscal 2025. Segment operating income was $27 million in the fourth quarter, down from $46 million a year earlier. Full-year segment operating income declined to $212 million from $240 million in fiscal 2025. Diel said tobacco segment profitability was hurt by lower profitability and higher inventory write-downs of non-wrapper dark air-cured tobaccos. Total inventory write-downs for the tobacco operations segment were $43 million in fiscal 2026, compared with $19 million in fiscal 2025 and an average of $14 million across fiscal 2021 through fiscal 2025. In response to a question from Sidoti analyst Daniel Harriman, Wigner said the company conducted a thorough review of inventory on hand and market dynamics in the fourth quarter. He said Universal was comfortable with its current position after the write-downs, while noting that the company will continue to assess inventory values throughout the year under accounting rules. Wigner also said Universal expects uncommitted inventory to move back within its targeted 10% to 20% range during fiscal 2027. He said the company had already seen movement since March 31 and expects to provide a clearer update on its first-quarter call. Universal’s ingredients segment posted fourth-quarter revenue of $83 million, down from $90 million in the prior-year quarter. Full-year revenue was $348 million, up 3% from fiscal 2025. Segment operating income was $2 million in the fourth quarter, compared with $4 million a year earlier. For the full year, ingredients operating income was $3 million, down from $12 million in fiscal 2025. Diel said Universal’s FruitSmart and Silva businesses performed in line with expectations despite “significant industry headwinds.” He said the decline in segment operating income was mainly due to Shank’s, where profitability was affected by higher fixed and operating costs tied to recent growth investments and the development of a new product pipeline. Diel said Universal recorded approximately $41 million of goodwill when it acquired Shank’s in October 2021. During fiscal 2026, market conditions pressured revenue and profitability for both core products and new product development, and the company concluded that a non-cash goodwill impairment was appropriate after a valuation analysis conducted with a third-party consultant. “As a relatively new player in this space, converting customer interest into sustained revenue and margin growth can be a lengthy process,” Diel said, adding that Universal was behind in executing its commercial strategy at Shank’s amid market headwinds. Management said it has implemented a leadership-level organizational realignment at Shank’s focused on commercial execution, facility utilization and financial and operational efficiency. Diel said Shank’s remains a key part of Universal’s ingredients platform because of its underutilized capacity, technical capabilities and role in supporting innovation and solutions-based offerings. As of March 31, Universal’s net debt was $845 million, up from $817 million at the same point a year earlier. Diel said the increase was mainly due to higher working capital usage associated with purchasing and selling a significantly larger tobacco crop. The company’s liquidity availability, including cash and availability under committed and uncommitted credit lines, totaled more than $1.2 billion. Diel said Universal’s capital allocation strategy remains built around four priorities: Strengthening and investing for growth in the leaf tobacco business; Increasing the company’s dividend; Exploring growth opportunities for the plant-based ingredients business; Returning excess capital through share repurchases. Diel noted that Universal’s dividend payout ratio on reported net income was above 100% for fiscal 2026, but said that on an adjusted net income basis over the past five years it has been below 75%. He said the company feels “really good” about its ability to continue funding the dividend, while noting that management and the board review capital allocation regularly. Wigner highlighted Universal’s recent announcement of its 56th consecutive annual dividend increase and said the company remains committed to investing in both tobacco and ingredients. He said Universal sees opportunities for market share growth, volume growth and additional services in tobacco. Looking ahead, Wigner said Universal expects ongoing oversupply in tobacco markets, following a transition in fiscal 2026 from undersupply to balance and then oversupply as a result of large crops. He said large flue-cured and burley crops are also expected across the world in fiscal 2027. Wigner said Universal’s geographic diversification, broad customer base and experience buying the right grades at the right prices should help the company manage the environment. He said larger crops may also create additional opportunities for third-party processing. In ingredients, Wigner said Universal’s strategy remains focused on clean label, healthy, organic and solutions-based products. He said the company will focus on leveraging recent investments, improving commercial effectiveness, achieving operational efficiencies and improving financial performance. “We enter fiscal year 2027 focused on maximizing and optimizing our tobacco business, growing our ingredients business, and strengthening our company for the next 100 years,” Wigner said. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Universal Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Universal Corp (NYSE:UVV) reported a 2% increase in consolidated revenue for the fourth quarter, reaching $715 million. The company advanced from an A to an A rating in the Carbon Disclosure Project Supplier Engagement Assessment, highlighting its commitment to sustainability. Universal Corp (NYSE:UVV) has a strong market-leading position in the leaf tobacco business with over 100 years of operating experience. The company has invested in building a scalable ingredients platform, which is well-positioned for future growth. Universal Corp (NYSE:UVV) announced its 56th consecutive annual dividend increase, demonstrating a commitment to returning value to shareholders. The company recorded a $41 million non-cash goodwill impairment related to its Shanks operation, impacting financial results. Inventory write-downs, particularly in non-wrapper dark air-cured tobacco, negatively affected operating income. Net income for the full year was $33 million, down from $95 million in fiscal year 2025, primarily due to non-cash charges and weaker performance in certain segments. Operating loss for the fourth quarter was $15 million, compared to an operating income of $43 million in the same quarter last year. The ingredients segment faced significant industry headwinds, resulting in lower profitability and higher fixed and operating costs. Warning! GuruFocus has detected 4 Warning Sign with UVV. Is UVV fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss your confidence level in achieving inventory normalization during fiscal 2027 and any additional write-down risks in non-wrapper dark air-cured tobacco? A: Preston Wigner, Chairman, President, and CEO, expressed confidence in achieving inventory normalization within the 10-20% range during fiscal 2027. He noted that recent movements in inventory have been positive, and the company is comfortable with its current market dynamics and inventory positions. Steve Deal, CFO, added that inventory is recorded at the lower of cost or net realizable value, and they feel good about the upcoming year following a thorough review in Q4. Q: What are the underlying trends in the FluCured, Burley, and ingredients platform outside of Shanks, and how do they set up for fiscal 2027? A: Preston Wigner highlighted that the tobacco side is early in the season, with large crops expected globally. The company is leveraging its geographic footprint and customer relationships to manage oversupply. On the ingredients side, despite inflationary pressures, the strategy remains focused on clean label and solution-based products, with optimism for increased volumes and profitability. Q: Can you remind us of the company's capital allocation priorities and how you see the balance breaking down in the coming year? A: Steve Deal outlined the four pillars of the capital allocation strategy: investing in the tobacco business, increasing dividends, exploring growth opportunities in plant-based ingredients, and returning excess capital through share repurchases. The strategy remains unchanged, with a focus on funding dividends and realizing returns on past investments in ingredients. Q: How has your experience with the rollout of the Ingredients platform prepared you for the CFO role, and how do you view the long-term value proposition of the Ingredients platform? A: Steve Deal emphasized his focus on maximizing long-term shareholder value through profitable growth, regulatory compliance, and optimized capital allocation. He highlighted the importance of financial stewardship, excellence, strategic execution, and storytelling to convey Universal's unique position in the agroproduct space. Q: What steps are being taken to improve execution and financial discipline at Shanks following the goodwill impairment? A: Steve Deal mentioned a leadership-level organizational realignment at Shanks to strengthen commercial execution, improve facility utilization, and enhance financial and operational efficiency. The focus is on converting strategic intent into financial performance and supporting growth through disciplined capital allocation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.