Domtar: Here’s What Investors Need to Know Before Earnings

Domtar (NYSE:UFS) will report earnings before markets open on Thursday, July 25th. Domtar Corporation produces uncoated freesheet paper. The Company manufactures business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages forestland in Canada and the United States, and produces lumber and other wood products.

Here is your Cheat Sheet to Domtar Earnings:

Earnings Expectations: Analysts expect earnings of $0.41 per share on revenues of $1.31 billion. Currently, the company’s P/E ratio stands at 13.25.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.91 to a profit $1.36. For the current year, the average estimate is a profit of $4.35, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Domtar has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 6,394 5,465 5,850 5,612 5,482
Diluted EPS ($) -13.32 7.18 14.01 9.08 4.75

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 1,368.00 1,389.00 1,327.00 1,345.00
Diluted EPS ($) 1.61 1.84 0.54 1.29

Past Performance:
Domtar has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)