Sidoti Issues Negative Forecast for Sylvamo Earnings

Key Points

• Sidoti sharply cut Sylvamo’s near-term earnings outlook, slashing its Q2 2026 EPS estimate to $0.20 from $0.68 and reducing FY2026 EPS to $2.10 from $2.95.
• Sylvamo’s latest quarter disappointed on profits, reporting a loss of $0.53 per share versus expectations for a smaller loss, even though revenue of $755 million came in above estimates.
• Despite the downgrade, analysts remain mixed overall, with the stock holding a consensus Hold rating and an average price target of $54.00, while shares traded around $38.33.

Sylvamo Corporation (NYSE:SLVM - Free Report) - Research analysts at Sidoti cut their Q2 2026 EPS estimates for shares of Sylvamo in a note issued to investors on Tuesday, May 12th. Sidoti analyst D. Harriman now anticipates that the company will earn $0.20 per share for the quarter, down from their previous forecast of $0.68. The consensus estimate for Sylvamo's current full-year earnings is $2.72 per share. Sidoti also issued estimates for Sylvamo's Q3 2026 earnings at $1.56 EPS, FY2026 earnings at $2.10 EPS, Q1 2027 earnings at $0.73 EPS, Q2 2027 earnings at $0.87 EPS and Q4 2027 earnings at $1.85 EPS.

Several other equities research analysts have also recently weighed in on the stock. Truist Financial assumed coverage on shares of Sylvamo in a research report on Monday, March 30th. They set a "buy" rating and a $54.00 price target for the company. Royal Bank Of Canada dropped their price target on shares of Sylvamo from $50.00 to $49.00 and set a "sector perform" rating for the company in a research report on Monday. Zacks Research raised shares of Sylvamo from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Weiss Ratings cut shares of Sylvamo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $54.00.

Sylvamo Trading Down 3.5%

Shares of SLVM opened at $38.33 on Thursday. The stock has a market capitalization of $1.52 billion, a P/E ratio of 15.15, a PEG ratio of 0.52 and a beta of 0.91. The company has a quick ratio of 0.81, a current ratio of 1.45 and a debt-to-equity ratio of 0.78. The firm has a fifty day simple moving average of $42.12 and a two-hundred day simple moving average of $45.89. Sylvamo has a twelve month low of $37.09 and a twelve month high of $57.65.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its quarterly earnings results on Friday, May 8th. The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.28). The firm had revenue of $755.00 million for the quarter, compared to analysts' expectations of $740.85 million. Sylvamo had a net margin of 3.11% and a return on equity of 9.79%. The company's quarterly revenue was down 8.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.68 EPS.

Sylvamo Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th were given a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend was Tuesday, April 7th. Sylvamo's dividend payout ratio (DPR) is currently 71.15%.

Insider Activity at Sylvamo

In other news, SVP Rodrigo Davoli sold 3,250 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $46.46, for a total value of $150,995.00. Following the completion of the sale, the senior vice president directly owned 46,484 shares of the company's stock, valued at approximately $2,159,646.64. This trade represents a 6.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 0.81% of the company's stock.

Institutional Investors Weigh In On Sylvamo

Several institutional investors and hedge funds have recently modified their holdings of SLVM. Royal Bank of Canada lifted its position in shares of Sylvamo by 49.4% in the 1st quarter. Royal Bank of Canada now owns 22,853 shares of the company's stock worth $1,532,000 after purchasing an additional 7,556 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Sylvamo by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,690 shares of the company's stock valued at $1,388,000 after acquiring an additional 893 shares during the period. Empowered Funds LLC lifted its position in Sylvamo by 16.9% during the 1st quarter. Empowered Funds LLC now owns 17,730 shares of the company's stock valued at $1,189,000 after acquiring an additional 2,557 shares during the period. Intech Investment Management LLC lifted its position in Sylvamo by 25.9% during the 1st quarter. Intech Investment Management LLC now owns 18,140 shares of the company's stock valued at $1,217,000 after acquiring an additional 3,727 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in Sylvamo by 23.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 24,621 shares of the company's stock valued at $1,234,000 after acquiring an additional 4,613 shares during the period. 91.16% of the stock is owned by hedge funds and other institutional investors.

More Sylvamo News

Here are the key news stories impacting Sylvamo this week:

• Positive Sentiment: Sidoti raised its Q4 2027 EPS estimate for Sylvamo to $1.85 from $1.50, and lifted FY2027 earnings to $5.75 from $5.65, signaling a more optimistic longer-term outlook.
• Positive Sentiment: Analysts also increased their Q3 2027 EPS estimate to $2.30 from $2.05, which may support investor confidence in future profitability.
• Neutral Sentiment: Sylvamo shared a Q1 2026 earnings call presentation, but no new operating update was provided in the linked item.
• Neutral Sentiment: Coverage from other media sources highlighted analyst commentary on Sylvamo and peers, but did not add a major company-specific catalyst.
• Negative Sentiment: Sidoti cut its FY2026 EPS estimate to $2.10 from $2.95, a substantial downgrade that points to weaker near-term earnings expectations.
• Negative Sentiment: The firm also lowered Q2 2026 EPS to $0.20 from $0.68 and trimmed Q3 2026 and Q1/Q2 2027 estimates, reinforcing concerns about softer results in the nearer term.

About Sylvamo

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.

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