NYSE$SLVM

Sylvamo Corp. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Sylvamo's second quarter results showcased increased earnings and operating margins, leading to an upward revision of the annual guidance.

Sylvamo reported strong second-quarter results, marked by increased earnings and operating margins. The company raised its full-year adjusted EBITDA and free cash flow guidance, driven by strong first-half performance and a positive outlook for the second half. Sylvamo remains focused on debt reduction, strategic investments, and returning value to shareholders.

  • Net income from continuing operations was $84 million ($1.89 per diluted share), up from $55 million ($1.25 per diluted share) in the first quarter of 2022.
  • Adjusted operating earnings (non-GAAP) reached $90 million ($2.02 per diluted share), exceeding the company’s guidance range by $0.12 per diluted share.
  • Adjusted EBITDA (non-GAAP) was $189 million (20.7% margin), compared to $146 million (17.8% margin) in the first quarter of 2022, surpassing the high end of guidance by $9 million.
  • Free cash flow (non-GAAP) amounted to $39 million, an increase from $32 million in the first quarter of 2022.

Headline financials

Total Revenue

$912M

Previous: $238M+283.2%
EPS (adj)

$2.02

Previous: $2.62-22.9%
Adjusted EBITDA

$189M

No prior period
Free cash flow

$39M

No prior period
Effective tax rate

28.0%

No prior period
Capital Expenditures

-$59M

No prior period
Net Income

-$59M

Previous: $115M-151.3%
Operating Income

-$641M

No prior period
Gross Profit

-$560M

Previous: $287M-295.1%
Cash & Equivalents

$157M

Previous: $188M-16.5%
Total Assets

$2.74B

No prior period
Stock-Based Comp

$7M

Previous: $4M+75.0%

Revenue & EPS history

Sylvamo · Revenue · Quarterly

$912M

Q2 2022+283.2%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Sylvamo · $933M total across 3 segments · Q2 2022

  • North America
    $549M
  • Latin America
    $249M
  • Europe
    $135M

Forward guidance

Sylvamo expects adjusted EBITDA to be between $205 million and $215 million. Price and mix are expected to improve by $40 million to $45 million compared to the second quarter, reflecting continued realization of prior increases in all regions.

Tailwinds

  • Price and mix are expected to improve by $40 million to $45 million compared to the second quarter, reflecting continued realization of prior increases in all regions
  • Volume is expected to improve by $5 million to $10 million, with seasonally stronger volume in North America
  • Operations and costs are expected to increase by $5 million to $10 million

Headwinds

  • Input and transportation costs are projected to rise by $35 million to $40 million, primarily due to higher chemicals, energy, fiber and transportation costs
  • Total maintenance outage expenses are projected to decrease by $14 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.2%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

59%

13 / 22 earnings

Positive

+23.3%

Q4 2023

Best reaction

-17.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-12.5%-12.3%
Q4 2025+5.1%-9.5%-20.3%
Q3 2025+0.1%+8.7%+13.1%
Q1 2025-12.6%-6.1%-10.6%
Q4 2024-7.3%-5.2%-14.1%
Q3 2024-14.7%-11.4%-6.5%
Q2 2024+11.3%+13.0%+10.3%
Q1 2024+2.7%+6.1%+6.0%
Q4 2023+23.3%+20.8%+24.7%
Q3 2023+7.4%+10.5%+18.4%
Q2 2023-17.0%-16.4%-15.6%
Q1 2023-7.9%-7.3%-5.2%
Q4 2022-1.3%-1.1%+2.9%
Q3 2022+8.4%+13.7%+32.3%
Q2 2022+3.0%+4.9%-8.0%
Q1 2021+6.7%+8.7%+4.1%
Q1 2022+14.4%+20.7%+19.4%
Q2 2021-5.0%-8.8%+1.5%
Q4 2019-5.0%-8.8%+1.5%
Q4 2021+7.1%+13.6%-2.9%
Q4 2020+6.5%+10.1%+1.3%
Q3 2021+4.2%+11.0%+5.6%
Q3 2020
Q2 2020
Q1 2020

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