Sylvamo (NYSE:SLVM) Releases Earnings Results, Beats Expectations By $0.01 EPS

Sylvamo (NYSE:SLVM) issued its quarterly earnings results on Friday. The company reported $0.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.01, FiscalAI reports. The business had revenue of $806.00 million for the quarter, compared to analyst estimates of $811.25 million. Sylvamo had a return on equity of 9.79% and a net margin of 3.11%.The company’s revenue was up 1.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.37 earnings per share.

Here are the key takeaways from Sylvamo’s conference call:

• Adjusted EBITDA more than doubled sequentially to $60 million in Q2, driven primarily by paper price increases, improved mix, lower operating costs, and European green-energy credits.
• Management expects a stronger second half, including a projected $75 million-$85 million improvement in price and mix versus the first half, seasonally stronger Latin American demand, lower fiber costs, and the reversal of much of the working-capital build.
• North American volumes are expected to decline in the second half because of the Riverdale supply loss, an Eastover outage extending beyond the planned 45 days, and reduced imports from Brazil following tariff changes.
• Eastover investments remain on schedule and on budget, with the paper-machine speed-up and new sheeter expected to deliver approximately $50 million in annual benefits; including the warehouse expansion, the projects are expected to generate about $55 million annually.
• European operations continue to face difficult industry conditions and unacceptable margins. Although cost and mix improvements are underway, management said it may consider alternatives such as further investment, closure, or a sale if the outlook is not satisfactory, potentially in 2027.

Sylvamo Stock Up 8.6%

SLVM stock opened at $41.04 on Friday. The company has a market capitalization of $1.63 billion, a P/E ratio of 16.22, a price-to-earnings-growth ratio of 0.93 and a beta of 0.87. Sylvamo has a 12 month low of $35.53 and a 12 month high of $56.80. The firm’s fifty day simple moving average is $38.85 and its 200-day simple moving average is $42.22. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.45 and a quick ratio of 0.81.

Sylvamo Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 28th. Stockholders of record on Tuesday, July 7th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 4.4%. The ex-dividend date of this dividend was Tuesday, July 7th. Sylvamo’s dividend payout ratio is 71.15%.

Insider Activity

In related news, Director Lizanne M. Bruce sold 1,230 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $41.70, for a total transaction of $51,291.00. Following the completion of the transaction, the director owned 14,475 shares of the company’s stock, valued at $603,607.50. This trade represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.81% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sylvamo

A number of institutional investors have recently modified their holdings of SLVM. UMB Bank n.a. boosted its stake in shares of Sylvamo by 171.2% in the fourth quarter. UMB Bank n.a. now owns 564 shares of the company’s stock worth $27,000 after buying an additional 356 shares during the last quarter. Advisory Services Network LLC acquired a new position in Sylvamo in the third quarter valued at approximately $38,000. EverSource Wealth Advisors LLC boosted its position in Sylvamo by 185.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 982 shares of the company’s stock worth $49,000 after purchasing an additional 638 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in shares of Sylvamo by 83.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,275 shares of the company’s stock worth $62,000 after purchasing an additional 579 shares during the period. Finally, Virtus Investment Advisers LLC acquired a new stake in shares of Sylvamo during the 4th quarter worth approximately $160,000. Hedge funds and other institutional investors own 91.16% of the company’s stock.

Wall Street Analysts Forecast Growth

SLVM has been the topic of several research analyst reports. Zacks Research downgraded shares of Sylvamo from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 14th. Truist Financial decreased their price target on shares of Sylvamo from $54.00 to $51.00 and set a “buy” rating for the company in a report on Wednesday, July 15th. Royal Bank Of Canada lowered their price objective on shares of Sylvamo from $49.00 to $46.00 and set a “sector perform” rating for the company in a research note on Friday, July 17th. Weiss Ratings lowered shares of Sylvamo from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 11th. Finally, Bank of America reissued a “neutral” rating and issued a $45.00 target price on shares of Sylvamo in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and an average price target of $47.33.

Sylvamo Company Profile

Sylvamo Corporation, trading on the New York Stock Exchange under the ticker SLVM, is a leading global producer of uncoated freesheet paper. The company was established in October 2021 through a spin-off from International Paper, creating an independent entity focused exclusively on the development, manufacturing and marketing of high-quality uncoated paper products. Headquartered in Memphis, Tennessee, Sylvamo draws on decades of industry experience inherited from its predecessor, positioning itself to meet evolving customer needs in paper-based communications and packaging applications.

The company’s core product portfolio includes office and digital print papers, direct mail and marketing materials, catalog and commercial printing papers, and a range of specialty and value-added grades.