Overview

• Sylvamo Q3 sales beat analyst expectations, reaching $846 mln

• Adjusted EBITDA for Q3 slightly missed analyst expectations

• Company returned $60 mln to shareholders via repurchases and dividends

Outlook

• Company expects Q4 adjusted EBITDA between $115 mln and $130 mln

• Price and mix expected to decrease by $20 mln to $25 mln in Q4

• Volume projected to improve by $15 mln to $20 mln in Q4

Result Drivers

• VOLUME GROWTH - Sylvamo reported a 7% increase in sales volume quarter-over-quarter, driven by higher volumes in Latin America and North America

• COST MANAGEMENT - Decreased planned maintenance outage expenses by $66 mln contributed to improved operational performance

• REGIONAL CHALLENGES - Lower prices and mix in Europe impacted results, but were offset by operational efficiencies and strategic initiatives

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the paper products peer group is "buy."

• Wall Street's median 12-month price target for Sylvamo Corp is $49.00, about 12.1% above its November 6 closing price of $43.08

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw35TYc5a

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(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.)