Overview
Acadian Timber Q2 revenue of CAD 17.1 mln misses analyst expectations, per LSEG data
Reports EPS of CAD 0.15
Revenue decline due to absence of carbon credit sales from prior year
Outlook
Company expects near-term sawlog demand to remain stable
Acadian evaluating opportunities for compliance market carbon credits in Canada
Company expects improved marketability of carbon credits with updated protocol
Result Drivers
CARBON CREDIT IMPACT - Absence of carbon credit sales contributed to revenue decline, as prior year included CAD 19.7 mln from such sales
MAINE OPERATIONS - Lower production in Maine due to unfavorable weather and transition to internal logging operations affected timber sales
NEW BRUNSWICK SALES - Increased timber sales volumes in New Brunswick were offset by lower pricing and reduced timber services revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | C$17.10 mln | C$24.70 mln (1 Analyst) |
Q2 EPS | C$0.15 | ||
Q2 Net Income | C$2.70 mln | ||
Q2 Adjusted EBITDA | C$2.40 mln | ||
Q2 Adjusted EBITDA Margin | 14.0% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
Wall Street's median 12-month price target for Acadian Timber Corp is C$19.50, about 7.7% above its August 5 closing price of C$17.99
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNX9w5rHl
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)