Sylvamo (NYSE:SLVM) Announces Earnings Results, Misses Expectations By $0.28 EPS

Sylvamo (NYSE:SLVM) released its quarterly earnings results on Friday. The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.28), Zacks reports. Sylvamo had a net margin of 3.94% and a return on equity of 15.12%. The company had revenue of $755.00 million during the quarter, compared to analyst estimates of $740.85 million. During the same quarter last year, the company earned $0.68 EPS. The firm’s quarterly revenue was down 8.0% compared to the same quarter last year.

Here are the key takeaways from Sylvamo’s conference call:

• Operational reliability issues in Europe and Brazil reduced Q1 results by ~$9 million versus Q4 and management expects some incremental costs into Q2; a debarking drum at Nymölla won’t be repaired until Q4, causing ~$1–2 million of incremental quarterly cost while sourcing external chips.
• The company implemented uncoated freesheet price increases across all regions (North America ~5–8% realized starting in March; Brazil and other LatAm increases underway) and expects further realization through Q2–Q3, supporting margin recovery.
• U.S. tariff changes allowed Sylvamo to redirect Brazilian shipments into North America, improving the estimated full?year North American footprint transition impact from ~$85 million negative to about $65 million negative (mostly in H2), though management will reassess if tariffs change.
• Strategic investments at Eastover (60,000?ton paper machine optimization, new sheeter, woodyard modernization) remain on schedule and budget; management expects these high?return projects to drive incremental earnings and a meaningful portion of the company’s long?term free cash flow upside (management cites ~$50 million of benefit, largely realized in 2027 and beyond).
• Sylvamo has launched a three?year lean transformation (starting in LatAm, then North America and corporate) to embed continuous improvement and lower costs, but measurable dollar benefits are expected over multiple years rather than immediately.

Sylvamo Stock Down 6.4%

Shares of NYSE:SLVM traded down $2.81 during midday trading on Friday, hitting $40.89. The stock had a trading volume of 622,367 shares, compared to its average volume of 310,752. The company has a market cap of $1.62 billion, a P/E ratio of 12.54, a PEG ratio of 0.53 and a beta of 0.91. Sylvamo has a 12 month low of $37.09 and a 12 month high of $57.77. The business’s 50-day simple moving average is $42.60 and its 200-day simple moving average is $45.97. The company has a quick ratio of 0.92, a current ratio of 1.50 and a debt-to-equity ratio of 0.79.

Sylvamo Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Investors of record on Tuesday, April 7th were paid a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, April 7th. This represents a $1.80 annualized dividend and a dividend yield of 4.4%. Sylvamo’s dividend payout ratio (DPR) is currently 55.21%.

Insider Transactions at Sylvamo

In other Sylvamo news, SVP Rodrigo Davoli sold 3,250 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $46.46, for a total value of $150,995.00. Following the completion of the sale, the senior vice president owned 46,484 shares in the company, valued at $2,159,646.64. This trade represents a 6.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On Sylvamo

Institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LLC bought a new position in Sylvamo during the fourth quarter worth about $215,000. Guggenheim Capital LLC bought a new stake in Sylvamo in the fourth quarter valued at approximately $218,000. Kestra Advisory Services LLC bought a new stake in Sylvamo in the fourth quarter valued at approximately $190,000. Bank of Montreal Can acquired a new stake in shares of Sylvamo in the fourth quarter valued at approximately $214,000. Finally, Verity Asset Management Inc. acquired a new stake in shares of Sylvamo in the third quarter valued at approximately $211,000. 91.16% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Truist Financial started coverage on shares of Sylvamo in a research note on Monday, March 30th. They issued a “buy” rating and a $54.00 target price for the company. Weiss Ratings reissued a “hold (c)” rating on shares of Sylvamo in a research note on Wednesday, January 21st. Royal Bank Of Canada set a $50.00 price objective on Sylvamo in a research report on Thursday, April 16th. Finally, Zacks Research upgraded Sylvamo from a “strong sell” rating to a “hold” rating in a report on Monday, April 27th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $54.33.

Sylvamo Company Profile

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.