Sylvamo Q2 revenue misses estimates, forecasts stronger H2
Overview
Sylvamo Q2 revenue falls 15% yr/yr to $794 mln, missing analysts' expectations
Adjusted EBITDA of $82 mln missed analyst estimates
Company expects stronger performance in H2 due to reduced maintenance outages
Outlook
Sylvamo expects Q3 adjusted EBITDA of $145 mln to $165 mln
Company projects Q3 volume to improve by $15 mln to $20 mln
Price and mix expected to decrease by $15 mln to $20 mln in Q3
Planned maintenance expenses to decrease by $66 mln in Q3
Result Drivers
MAINTENANCE OUTAGES - Q2 faced the heaviest maintenance outages in over five years, increasing expenses by $39 mln
FOREIGN EXCHANGE IMPACT - Unfavorable foreign exchange impact of $13 mln affected results
PRICE AND MIX - Favorable price and mix contributed $12 mln, driven by North America and Latin America
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $794 mln | $828.10 mln (3 Analysts) |
Q2 EPS | $0.37 | ||
Q2 Net Income | $15 mln | ||
Q2 Adjusted EBITDA | Miss | $82 mln | $87.70 mln (3 Analysts) |
Q2 Free Cash Flow | -$2 mln | ||
Q2 Segment Operating Profit | $30 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the paper products peer group is "buy."
Wall Street's median 12-month price target for Sylvamo Corp is $64.00, about 25.2% above its August 7 closing price of $47.84
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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