Universal Q1 revenue falls 12% on lower tobacco sales

• Universal expects tobacco shipments to be heavily weighted to the second half of fiscal 2027.
• The company expects customer demand to remain consistent with its fiscal-year sales plan.
• Universal anticipates improvement efforts in its ingredients segment to continue through next fiscal year.

Wall Street's median 12-month price target for Universal Corporation is $74.00, about 40.3% above its August 4 closing price of $52.76.

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago.

Universal's fiscal first-quarter revenue fell 12% on lower tobacco sales volumes and prices.

• Adjusted EPS for fiscal Q1 was negative, with a loss of $0.20.
• The company cited tobacco oversupply, weak demand and high fixed costs in its ingredients business for the declines.

Result drivers

• Tobacco oversupply - The company said oversupply in flue-cured and burley tobacco markets led to lower sales volumes and prices.