NYSE$SLVM

Sylvamo Corp. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sylvamo reported Q4 2023 earnings, demonstrating strong operating cash flow and returning $127 million in cash to shareowners for the full year.

Sylvamo's Q4 2023 results showed net sales of $964 million and a net income from continuing operations of $49 million. The company's adjusted EBITDA was $117 million with a 12% margin. They also generated $104 million in free cash flow during the quarter.

  • Net sales reached $964 million, up from $897 million in the previous quarter.
  • Net income from continuing operations was $49 million, compared to $58 million in the third quarter.
  • Adjusted EBITDA was $117 million with a 12% margin, down from $158 million with an 18% margin in Q3.
  • Free cash flow was $104 million, a decrease from $155 million in the prior quarter.

Headline financials

Total Revenue

$964M

Previous: $927M+4.0%
EPS (adj)

$1.16

Previous: $1.97-41.1%
Free Cash Flow

$104M

Previous: $84M+23.8%
Net Income

$49M

Previous: $88M-44.3%
Operating Income

$77M

Previous: $122M-36.9%
Gross Profit

$164M

Previous: $273M-39.9%
Stock-Based Comp

$2M

Previous: $4M-50.0%

Revenue & EPS history

Sylvamo · Revenue · Quarterly

$964M

Q4 2023+4%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Sylvamo · $906M total across 3 segments · Q3 2023

  • North America
    $476M-19.2%
  • Latin America
    $246M-8.9%
  • Europe
    $184M+41.5%

Forward guidance

Sylvamo anticipates an adjusted EBITDA between $105 million and $125 million for Q1 2024.

Tailwinds

  • Operations and other costs are expected to improve by $20 million to $25 million due primarily to lower economic downtime.

Headwinds

  • Price and mix are expected to decrease slightly by $5 million to $10 million, primarily reflecting a seasonal, geographic mix shift in Latin America
  • Volume is projected to decrease by $10 million to $15 million, with seasonally weaker industry demand in Latin America
  • Input and transportation costs are projected to increase by $5 million to $10 million due to increased transportation costs, mainly in North America and higher fiber costs in Latin America

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 Q4 2023

Historical avgQ4 2023

+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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