Overview
Interfor Q2 sales miss analyst expectations, totaling C$780.5 mln, per LSEG data
Net earnings of C$11.1 mln in Q2, reversing losses from previous quarters
Co completed sale of Coastal B.C. forest tenures, enhancing cash flow
Outlook
Interfor expects near-term lumber market volatility due to changing monetary policies
Company anticipates higher duty rates to amplify volatility in Canadian lumber exports
Interfor positioned to manage volatility with diversified product mix and regional operations
Canadian lumber expected to remain key supply source for U.S. needs in mid-term
Result Drivers
LUMBER SHIPMENTS - Lumber shipments exceeded production by 5%, reducing inventory by 37 mln board feet
FINANCIAL POSITION - Positive operating cash flow and reduced working capital improved financial position
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
C$780.50 mln
C$805.60 mln (3 Analysts)
Q2 Net Income
C$11.10 mln
Q2 Adjusted EBITDA
C$17.20 mln
Q2 Adjusted EBITDA Margin
2.2%
Q2 Basic EPS
C$0.22
Q2 Net Debt
C$798 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
Wall Street's median 12-month price target for Interfor Corp is C$19.00, about 34.6% above its August 6 closing price of C$12.43
The stock recently traded at 103 times the next 12-month earnings vs. a P/E of 227 three months ago
Press Release: ID:nGNX1cKTf8
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)