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

Unilever (NYSE:UL) announced its quarterly earnings data 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 company had revenue of $14.62 billion for 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. The business has a 50 day moving average of $59.32 and a 200-day moving average of $62.27. Unilever has a 1 year low of $54.75 and a 1 year high of $74.97.

Institutional Investors Weigh In On Unilever

Several hedge funds have recently added to or reduced their stakes in the business. Palisade Asset Management LLC acquired a new position in Unilever in the 3rd quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Unilever during the third quarter worth $31,000. Quattro Advisors LLC acquired a new position in shares of Unilever during the fourth quarter worth $33,000. Truvestments Capital LLC bought a new stake in shares of Unilever in the fourth quarter worth $36,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of Unilever in the fourth quarter worth $44,000. 9.67% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on UL. Zacks Research cut Unilever from a “hold” rating to a “strong sell” rating in a report on Monday, June 29th. Jefferies Financial Group reissued an “underperform” rating on shares of Unilever in a report on Monday, July 6th. DZ Bank raised shares of Unilever from a “hold” rating to a “strong-buy” rating in a report on Wednesday, April 8th. Weiss Ratings cut shares of Unilever from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, May 29th. Finally, Royal Bank Of Canada upgraded shares of Unilever from an “underperform” rating to a “sector perform” rating in a research report on Tuesday, April 21st. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $65.55.

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.