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SXP Supremex News Story

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Envelope maker Supremex misses Q2 revenue estimates, sets stock buyback plan

Overview

Supremex Q2 revenue falls to C$66.0 mln, missing analyst expectations

Company reports net loss of C$0.3 mln, compared to net earnings last year

Supremex renews NCIB, plans to repurchase up to 10% of public float

Result Drivers

ENVELOPE DECLINE - Revenue in envelope segment fell due to decreased volume from a major U.S. customer and pricing pressures

PACKAGING GROWTH - Packaging segment revenue rose due to higher demand and new business wins

FOREIGN EXCHANGE LOSS - Non-cash foreign exchange loss impacted profitability, overshadowing cost reduction efforts

Key Details

MetricBeat/MissActualConsensus Estimate
Q2 RevenueMissC$65.96 mlnC$70.10 mln (1 Analyst)
Q2 Adjusted EPSC$0.14 (1 Analyst)
Q2 Adjusted Net IncomeC$75,000
Q2 Adjusted EBITDAC$5.83 mln
Q2 Adjusted EBITDA Margin8.8%
Q2 Operating IncomeC$692,000
Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "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 Supremex Inc is C$5.00, about 15.8% above its August 6 closing price of C$4.21 The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago Press Release: ID:nGNX8Gv98K (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.)

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