MEMPHIS, Tenn. - Sylvamo Corporation (NYSE:SLVM), the world's paper company, saw its stock jump 6.5% after reporting second quarter earnings that beat analyst expectations.
The company posted adjusted earnings per share of $1.98, surpassing the consensus estimate of $1.58 by $0.40. Revenue came in at $933 million, slightly below the $937.56 million analysts were expecting.
Net income for the quarter was $83 million, or $1.98 per diluted share, compared to $43 million, or $1.02 per diluted share, in the first quarter. Adjusted EBITDA rose to $164 million, representing an 18% margin, up from $118 million and a 13% margin in Q1.
"In the second quarter, price and mix were favorable and input costs largely remained stable compared to last quarter," said Jean-Michel Ribiéras, Chairman and CEO of Sylvamo.
The company provided third quarter guidance for adjusted EBITDA between $170 million to $185 million. Sylvamo expects volume to increase $10-15 million in Q3, driven by Latin America and North America, while price and mix are projected to be slightly unfavorable.
Sylvamo's board declared a 50% dividend increase for the third quarter to $0.45 per share. The company has repurchased $30 million of shares YTD and has $120 million remaining on its buyback authorization.
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