Univar Inc.UNVR is set to release second-quarter 2015 results before the opening bell on Jul 29, 2015.
Univar is a global distributor of chemicals and innovative services. Founded in 1924 and headquartered in Downers Grove, IL, the company offers solvents, resins, pigments, acids, bases, surfactants, glycols, inorganic compounds and alcohols. It also offers transportation and warehousing infrastructure, chemicals and hazardous materials' handling services. The company serves in coatings and adhesives, food, oil and gas, personal care and pharmaceutical industries.
Let's see how things are shaping up for this announcement.
Factors to Consider
Last month, Univar declared the closing of its initial public offering of common stock at a price of $22.00 per share. This followed company's pricing of initial public offering of 35 million shares of common stock. As the underwriters fully exercised the over-allotment option to purchase an additional 5.25 million shares, 20 million shares were sold by Univar and 20.25 million shares were sold by specific shareholders. Univar's shares began trading on the New York Stock Exchange on Jun 18, 2015, under the ticker symbol 'UNVR'.
Net proceeds from the offering will be used to redeem, repurchase, or acquire $650 million of outstanding subordinated Notes, due in 2017 and 2018. The proceeds, which will also be used for general corporate purposes and for paying related fees and expenses, can leverage the company's financial position by reducing debt and through ongoing cost management.
Univar is also undertaking new acquisitions to strengthen its footprint in various end-markets along with expanding its geographic presence. Most recently, the company declared that its fully-owned subsidiary, Univar USA Inc., has acquired the assets of Chemical Associates, Inc. − a marketer, manufacturer, and distributor of different chemicals.
The acquisition is expected to boost the company's presence in various key markets like personal care, food, cleaning and sanitization, lubricants, and coatings and adhesives. It will also enable the company to gain access to various grades of oils and acids as well as the technical expertise to renovate and recreate unique grades of these products to address customer-specific requirements.
In Apr 2015, Univar had acquired all of the outstanding shares of Key Chemical, Inc. − one of the largest suppliers of hydrofluosilicic acid (fluoride) in the U.S.
Univar, whose business is divided into four geographical regions - U.S., Canada, Europe, the Middle East, and Africa (EMEA), and Rest of World, recorded global sales of $10.4 billion in 2014. The company, with a global network of above 700 distribution facilities, is well poised to benefit from its broad range of product offerings, geographic presence and differentiated value-added service offerings.
Moreover, Univar runs an extensive chemical distribution network to cater to its international customer base in both established and emerging markets.
Stocks That Warrant a Look
Based on our proven model, stocks with a positive Earnings ESP and a Zacks Ranks #1, 2 or 3 have a significantly higher chance of beating earnings. Here are some stocks in the chemical space that you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation ALB has an earnings ESP of +2.44% and a Zacks Rank #1 (Strong Buy).
Eastman Chemical Co. EMN has an earnings ESP of +2.78% and a Zacks Rank #3 (Hold).
Koppers Holdings Inc. KOP has an earnings ESP of +4.17% and a Zacks Rank #3 (Hold).
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