Resolute Forest Products Earnings: Here’s Why Investors are Not Happy Now

Resolute Forest Products Inc (NYSE:RFP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.55%.

Resolute Forest Products Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.67% to $0.19 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Decreased 5.22% to $1.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Resolute Forest Products Inc reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.18. It missed the average revenue estimate of $1.12 billion.

Quoting Management: “We faced softer pricing conditions overall in the second quarter, but we preserved margin with efficiencies and cost reductions,” said Richard Garneau, president and chief executive officer. “Our continued focus on operational excellence in our streamlined asset base makes us competitive even in environments like those facing our industry today.”

Key Stats (on next page)…

Revenue increased 3.07% from $1.07 billion in the previous quarter. EPS decreased 36.67% from $0.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.21 to a profit $0.25. For the current year, the average estimate has moved up from a profit of $0.81 to a profit of $0.95 over the last ninety days.

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

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