Shares of Sylvamo (SLVM) plunged 6.55% in pre-market trading on Friday following the release of the company's third-quarter earnings report and fourth-quarter guidance. The paper and packaging company's results fell short of analyst expectations, triggering a sell-off among investors.

Sylvamo reported adjusted earnings per share of $1.44 for the third quarter, missing the analyst consensus estimate of $1.54 by 6.49%. This represents a significant 40.98% decrease from the $2.44 per share reported in the same period last year. While the company's quarterly sales of $846 million slightly beat the analyst consensus estimate of $839.327 million, it still marked a 12.33% decrease from the $965 million reported in the previous year.

Adding to investor concerns, Sylvamo provided a disappointing outlook for the fourth quarter. The company expects Q4 adjusted EBITDA to be in the range of $115 million to $130 million, which is notably lower than the $151 million adjusted EBITDA reported for Q3. This guidance suggests a potential slowdown in the company's performance, further contributing to the negative market reaction. Despite reporting a 7% sales volume growth quarter-over-quarter and improved operating efficiencies, the market appears to be focusing on the earnings miss and the cautious forward-looking statements, leading to the sharp decline in stock price.