NYSE$SLVM

Sylvamo Corp. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Sylvamo delivered strong earnings, fortified financial position, and increased quarterly dividend.

Sylvamo reported strong third-quarter earnings and free cash flow, highlighted by the sale of Russian operations, achievement of gross debt target, and an increased quarterly dividend. The company continues to focus on commercial excellence, operational excellence, and financial discipline.

  • Net income from continuing operations of $109 million ($2.44 per diluted share) compared with $84 million ($1.89 per diluted share) in the second quarter of 2022
  • Adjusted operating earnings (non-GAAP) of $112 million ($2.51 per diluted share) compared with $90 million ($2.02 per diluted share) in the second quarter of 2022
  • Adjusted EBITDA (non-GAAP) of $216 million (22.3% margin) compared with $189 million (20.7% margin) in the second quarter of 2022
  • Free cash flow (non-GAAP) of $114 million compared with $39 million in the second quarter of 2022

Headline financials

Total Revenue

$968M

Previous: $908M+6.6%
EPS (adj)

$2.51

Previous: $2.27+10.6%
Adjusted EBITDA

$216M

Previous: $177M+22.0%
Free cash flow

$114M

Previous: $135M-15.6%
Capital Expenditures

-$91M

Previous: -$54M-68.5%
Net Income

$57M

Previous: $92M-38.0%
Operating Income

-$765M

Previous: -$634M-20.7%
Gross Profit

-$685M

Previous: -$587M-16.7%
Cash & Equivalents

$163M

Previous: $132M+23.5%
Total Assets

$2.8B

Previous: $2.74B+2.2%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

Sylvamo · Revenue · Quarterly

$968M

Q3 2022+6.6%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Sylvamo · $989M total across 3 segments · Q3 2022

  • North America
    $589M+31.8%
  • Latin America
    $270M+35.0%
  • Europe
    $130M-50.4%

Forward guidance

Adjusted EBITDA is expected to be $180 million to $190 million.

Tailwinds

  • Price and mix are expected to improve by $30 million to $35 million, reflecting continued realization of prior increases in all regions

Headwinds

  • Volume is expected to be flat to decreasing by up to $5 million, with seasonally weaker volume in Europe and North America
  • Operations and costs are expected to increase by $35 million to $40 million; seasonally higher in Europe and North America, plus foreign exchange impacts and other costs
  • Input and transportation costs are projected to be flat to increasing up to $5 million, primarily due to higher energy and input cost inflation
  • Total maintenance outage expenses are projected to increase by $21 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 Q3 2022

Historical avgQ3 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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