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SLVM — Sylvamo News Story

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Sylvamo Q2 sales miss on maintenance outages in Latin America, Europe

Sylvamo Q2 sales miss on maintenance outages in Latin America, Europe


Overview

  • Global paper maker's Q2 sales declined and missed analyst expectations

  • Adjusted EBITDA for Q2 missed analyst expectations

  • Company cited planned maintenance outages and higher input costs as factors impacting results


Outlook

  • Sylvamo expects stronger earnings performance in the second half of the yr

  • Company expects seasonally higher demand in Latin America through the second half

  • Sylvamo expects continued realization of price increases through the third qtr


Result Drivers

  • PRICE INCREASES - Co said realization of uncoated freesheet price increases across all regions contributed to improved sales price and mix

  • MAINTENANCE OUTAGES - Planned maintenance outages negatively impacted operating profits, especially in Latin America and Europe

  • INPUT COSTS - Higher input costs offset some gains from price increases, particularly in Latin America


Company press release: ID:nBw3bkblDa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$806 mln

$814.26 mln (4 Analysts)

Q2 Net Loss

$11 mln

Q2 Adjusted EBITDA

Miss

$60 mln

$73.82 mln (4 Analysts)

Q2 Free Cash Flow

-$23 mln

Q2 Segment Operating Profit

$14 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 Sylvamo Corp is $50.00, about 32.3% above its August 6 closing price of $37.78

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Aug 5 - Stronger real dents pulpmaker Klabin's earnings despite resilient demand

  • Aug 6 - Mercer International Q2 revenue flat, net loss narrows

  • Aug 6 - Finland's Metsa Board Q2 revenue falls


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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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