Unilever (NYSE:UL) Issues Quarterly Earnings Results

Unilever (NYSE:UL) released its earnings results on Tuesday. The company reported $0.92 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.93), FiscalAI reports. The firm had revenue of $14.62 billion for the quarter, compared to the consensus estimate 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 Price Performance

Shares of NYSE UL opened at $61.28 on Tuesday. The firm’s 50-day moving average price is $59.32 and its two-hundred day moving average price is $62.27. Unilever has a 52-week low of $54.75 and a 52-week high of $74.97.

Hedge Funds Weigh In On Unilever

Several institutional investors have recently made changes to their positions in UL. Financial Engines Advisors L.L.C. raised its position in shares of Unilever by 4.8% during the 3rd quarter. Financial Engines Advisors L.L.C. now owns 4,925 shares of the company’s stock worth $292,000 after purchasing an additional 225 shares during the period. Sepio Capital LP grew its stake in Unilever by 4.3% during the 4th quarter. Sepio Capital LP now owns 5,659 shares of the company’s stock worth $370,000 after buying an additional 235 shares during the last quarter. Advisory Services Network LLC increased its position in Unilever by 0.5% in the third quarter. Advisory Services Network LLC now owns 48,566 shares of the company’s stock worth $2,879,000 after buying an additional 237 shares during the period. Brown Brothers Harriman & Co. lifted its stake in Unilever by 4.1% in the fourth quarter. Brown Brothers Harriman & Co. now owns 6,743 shares of the company’s stock valued at $441,000 after buying an additional 267 shares during the last quarter. Finally, Binnacle Investments Inc boosted its holdings in shares of Unilever by 7.8% during the third quarter. Binnacle Investments Inc now owns 3,766 shares of the company’s stock valued at $223,000 after acquiring an additional 272 shares during the period. 9.67% of the stock is owned by institutional investors.

Analyst Ratings Changes

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