Domtar To Gain From Margin-Expansion Plan Amid Input Cost Woes
Zacks Investment Research | May 16, 2019 08:18AM ET
On May 15, we issued an updated research report on Domtar Corporation (TO:UFS) . The company’s performance will be driven by healthy demand in the paper and pulp markets, cost savings, margin-improvement plan and price increases. However, results may be affected by seasonally higher maintenance activity, rising raw-material prices and unfavorable foreign currency movements.
Domtar reported first-quarter 2019 adjusted earnings per share of $1.44, marking a significant improvement from the prior-year quarter’s earnings per share of 87 cents. Price and volume momentum in paper contributed to the impressive results. Consolidated sales went up 2.3% year over year $1,376 million.
Notably, the Zacks Consensus Estimate for 2019 earnings is currently pegged at $5.29, calling for year-over-year growth of 14.7%. The same for second-quarter 2019 is pegged at $1.02, indicating year-over-year growth of 57%.
Share Price Performance
Shares of Domtar have declined 0.1% over the past year compared with theZacks Investment Research
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