Domtar Earnings: Here’s Why Investors Don’t Like These Results

Domtar Corporation (NYSE:UFS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.15%.

Domtar Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 70.19% to $0.48 in the quarter versus EPS of $1.61 in the year-earlier quarter.

Revenue: Decreased 4.09% to $1.31 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Domtar Corporation reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $1.31 billion.

Quoting Management: “Our productivity improved in our paper business in the second quarter when compared to the first quarter,” said John D. Williams, President and Chief Executive Officer. “In pulp however, we had the busiest maintenance quarter on record with 10 of our 12 pulp mills taking shutdowns. Operational challenges during the start-up phase affected our costs but our mills are now running well and we are confident that those issues are behind us.”

Key Stats (on next page)…