Sylvamo (NYSE:SLVM) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• Sylvamo reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.47 and showing a 14.9% decline in revenue compared to the previous year.
• The company's stock fell 15.3% to $40.50 after the earnings report, with a market cap of $1.65 billion.
• Sylvamo announced a quarterly dividend of $0.45 per share, resulting in an annualized payout of $1.80 and a dividend yield of 4.4%.

Sylvamo (NYSE:SLVM - Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.47 by ($0.10), Zacks reports. Sylvamo had a return on equity of 23.99% and a net margin of 6.11%. The company had revenue of $794.00 million during the quarter, compared to the consensus estimate of $826.60 million. During the same quarter in the prior year, the business earned $1.98 earnings per share. The firm's quarterly revenue was down 14.9% compared to the same quarter last year.

Sylvamo Price Performance

Shares of Sylvamo stock traded up $1.07 on Wednesday, reaching $45.19. The company's stock had a trading volume of 39,123 shares, compared to its average volume of 349,522. The company has a market capitalization of $1.82 billion, a P/E ratio of 8.63, a PEG ratio of 2.37 and a beta of 1.00. Sylvamo has a 52-week low of $37.51 and a 52-week high of $98.02. The stock has a 50-day moving average price of $49.93 and a 200-day moving average price of $59.36. The company has a quick ratio of 0.91, a current ratio of 1.54 and a debt-to-equity ratio of 0.80.

Sylvamo Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 29th. Stockholders of record on Tuesday, July 8th were given a $0.45 dividend. The ex-dividend date was Tuesday, July 8th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.0%. Sylvamo's payout ratio is 34.42%.

Institutional Trading of Sylvamo

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

Analysts Set New Price Targets

A number of research firms have weighed in on SLVM. Royal Bank Of Canada set a $49.00 target price on Sylvamo and gave the stock a "sector perform" rating in a research note on Monday. Bank of America cut their price target on Sylvamo from $67.00 to $64.00 and set an "underperform" rating on the stock in a research note on Wednesday, July 9th.

About Sylvamo

Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers.