Sidoti Issues Pessimistic Outlook for Sylvamo Earnings

Key Points

• Sidoti lowered Sylvamo’s Q1 2027 EPS forecast to $0.59 from $0.62 and projected Q2 2027 EPS of $0.73, signaling a more cautious outlook.
• Sylvamo’s latest quarterly results modestly beat expectations, with EPS of $0.03 versus $0.02 expected, but revenue of $806 million fell short of estimates and earnings declined from $0.37 a year earlier.
• Analyst sentiment remains cautious: the stock has an overall “Reduce” rating and a consensus price target of $46.67, while shares opened at $39.84 and were down 1.2%.

Sylvamo Corporation (NYSE:SLVM - Free Report) - Equities researchers at Sidoti decreased their Q1 2027 earnings per share estimates for shares of Sylvamo in a report released on Tuesday, August 11th. Sidoti analyst D. Harriman now forecasts that the company will post earnings of $0.59 per share for the quarter, down from their previous forecast of $0.62. The consensus estimate for Sylvamo's current full-year earnings is $1.85 per share. Sidoti also issued estimates for Sylvamo's Q2 2027 earnings at $0.73 EPS.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.02 by $0.01. The company had revenue of $806.00 million for the quarter, compared to analysts' expectations of $811.25 million. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. Sylvamo's revenue was up 1.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 EPS.

A number of other equities research analysts have also recently commented on SLVM. Weiss Ratings reiterated a "sell (d+)" rating on shares of Sylvamo in a report on Friday. Wall Street Zen upgraded Sylvamo from a "sell" rating to a "hold" rating in a research note on Sunday, August 2nd. Truist Financial reissued a "buy" rating and issued a $49.00 target price (down from $51.00) on shares of Sylvamo in a report on Monday. Royal Bank Of Canada decreased their price target on Sylvamo from $49.00 to $46.00 and set a "sector perform" rating for the company in a research note on Friday, July 17th. Finally, Bank of America reaffirmed a "neutral" rating and set a $45.00 price target on shares of Sylvamo in a report on Tuesday, July 14th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $46.67.

Sylvamo Stock Down 1.2%

Shares of Sylvamo stock opened at $39.84 on Wednesday. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.80 and a current ratio of 1.47. The stock has a market capitalization of $1.58 billion, a PE ratio of 21.19, a price-to-earnings-growth ratio of 1.19 and a beta of 0.87. Sylvamo has a 52-week low of $35.53 and a 52-week high of $56.80. The company has a 50-day simple moving average of $38.89 and a two-hundred day simple moving average of $42.01.

Insider Transactions at Sylvamo

In other Sylvamo news, Director Lizanne M. Bruce sold 1,230 shares of Sylvamo stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $41.70, for a total value of $51,291.00. Following the completion of the sale, the director owned 14,475 shares of the company's stock, valued at approximately $603,607.50. The trade was a 7.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On Sylvamo

A number of institutional investors and hedge funds have recently modified their holdings of SLVM. Lazard Asset Management LLC boosted its position in shares of Sylvamo by 0.9% during the 2nd quarter. Lazard Asset Management LLC now owns 29,415 shares of the company's stock valued at $1,473,000 after acquiring an additional 259 shares during the last quarter. Rock Point Advisors LLC increased its position in Sylvamo by 0.3% in the fourth quarter. Rock Point Advisors LLC now owns 82,314 shares of the company's stock worth $3,963,000 after purchasing an additional 265 shares during the last quarter. UMB Bank n.a. increased its position in 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 purchasing an additional 356 shares during the last quarter. Farther Finance Advisors LLC raised its stake in Sylvamo by 162.7% during the fourth quarter. Farther Finance Advisors LLC now owns 838 shares of the company's stock valued at $40,000 after purchasing an additional 519 shares in the last quarter. Finally, Exchange Traded Concepts LLC raised its stake in Sylvamo by 8.4% during the second quarter. Exchange Traded Concepts LLC now owns 6,697 shares of the company's stock valued at $253,000 after purchasing an additional 519 shares in the last quarter. 91.16% of the stock is currently owned by hedge funds and other institutional investors.

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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