Earnings Preview: Sylvamo

Sylvamo SLVM is set to give its latest quarterly earnings report on Friday, 2025-05-09. Here's what investors need to know before the announcement.

Analysts estimate that Sylvamo will report an earnings per share (EPS) of $0.69.

Investors in Sylvamo are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.18, leading to a 1.8% increase in the share price on the subsequent day.

Here's a look at Sylvamo's past performance and the resulting price change:

Stock Performance

Shares of Sylvamo were trading at $59.23 as of May 07. Over the last 52-week period, shares are down 7.89%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Sylvamo

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Sylvamo.

The consensus rating for Sylvamo is Neutral, derived from 1 analyst ratings. An average one-year price target of $80.0 implies a potential 35.07% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Magnera, Clearwater Paper and Mercer Intl, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Magnera, with an average 1-year price target of $24.0, suggesting a potential 59.48% downside.
• Analysts currently favor an Outperform trajectory for Clearwater Paper, with an average 1-year price target of $37.0, suggesting a potential 37.53% downside.
• Analysts currently favor an Neutral trajectory for Mercer Intl, with an average 1-year price target of $5.0, suggesting a potential 91.56% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Magnera, Clearwater Paper and Mercer Intl, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Sylvamo ranks in the middle for consensus rating. It is at the top for revenue growth, with a significant increase compared to peers. In terms of gross profit, Sylvamo is at the top among its peers. However, its return on equity is lower compared to others in the analysis.

Unveiling the Story Behind Sylvamo

Sylvamo Corp is an uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills, it produces uncoated freesheet (UFS) for paper products such as cut size and offset paper, as well as market pulp. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers and Specialty papers. It operates in three geographical segments: Europe, Latin America, and North America. Key revenue is generated from North America.

A Deep Dive into Sylvamo's Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Sylvamo displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 0.62%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Sylvamo's net margin is impressive, surpassing industry averages. With a net margin of 8.35%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Sylvamo's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.08%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Sylvamo's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.96%, the company showcases efficient use of assets and strong financial health.

Debt Management: Sylvamo's debt-to-equity ratio is below the industry average at 0.95, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Sylvamo visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.