Analysts Expect Domtar Corp (UFS) to Announce $0.65 Earnings Per Share

Equities research analysts expect Domtar Corp (NYSE:UFS) (TSE:UFS) to report earnings per share (EPS) of $0.65 for the current fiscal quarter, according to Zacks Investment Research. Three analysts have provided estimates for Domtar’s earnings, with estimates ranging from $0.42 to $0.87. Domtar reported earnings per share of $0.61 during the same quarter last year, which indicates a positive year over year growth rate of 6.6%. The company is expected to issue its next earnings report on Friday, July 27th.

On average, analysts expect that Domtar will report full year earnings of $3.37 per share for the current fiscal year, with EPS estimates ranging from $2.49 to $3.75. For the next financial year, analysts forecast that the firm will report earnings of $3.57 per share, with EPS estimates ranging from $2.11 to $5.00. Zacks’ EPS calculations are an average based on a survey of sell-side research firms that that provide coverage for Domtar.

Domtar (NYSE:UFS) (TSE:UFS) last posted its earnings results on Tuesday, May 1st. The basic materials company reported $0.87 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.11. Domtar had a positive return on equity of 7.45% and a negative net margin of 3.42%. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the prior year, the company earned $0.32 earnings per share. Domtar’s revenue was up 3.3% on a year-over-year basis.

A number of research analysts have weighed in on the company. Zacks Investment Research raised Domtar from a “hold” rating to a “buy” rating and set a $49.00 target price on the stock in a report on Tuesday, May 1st. TheStreet raised Domtar from a “c” rating to a “b-” rating in a report on Tuesday, May 1st. Scotiabank reissued a “sector perform” rating and issued a $43.00 target price on shares of Domtar in a report on Wednesday, May 2nd. DA Davidson raised Domtar from an “underperform” rating to a “neutral” rating and lowered their target price for the company from $37.00 to $32.00 in a report on Wednesday, May 2nd. Finally, National Bank Financial increased their target price on Domtar from $42.00 to $45.00 and gave the company a “sector perform” rating in a report on Wednesday, May 2nd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and six have given a buy rating to the stock. Domtar currently has a consensus rating of “Hold” and an average target price of $44.25.

In related news, CEO John David Williams sold 40,789 shares of the stock in a transaction dated Thursday, May 17th. The stock was sold at an average price of $46.92, for a total transaction of $1,913,819.88. Following the completion of the sale, the chief executive officer now owns 40,789 shares in the company, valued at $1,913,819.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Daniel Buron sold 16,853 shares of the stock in a transaction dated Friday, March 16th. The stock was sold at an average price of $45.99, for a total value of $775,069.47. Following the sale, the vice president now owns 19,101 shares of the company’s stock, valued at approximately $878,454.99. The disclosure for this sale can be found here. In the last 90 days, insiders sold 95,360 shares of company stock valued at $4,400,650. Company insiders own 0.95% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. UBS Asset Management Americas Inc. grew its position in shares of Domtar by 62.8% during the fourth quarter. UBS Asset Management Americas Inc. now owns 123,200 shares of the basic materials company’s stock worth $6,101,000 after purchasing an additional 47,510 shares in the last quarter. Teacher Retirement System of Texas grew its position in shares of Domtar by 317.0% during the fourth quarter. Teacher Retirement System of Texas now owns 21,494 shares of the basic materials company’s stock worth $1,064,000 after purchasing an additional 16,339 shares in the last quarter. TIAA CREF Investment Management LLC grew its position in shares of Domtar by 9.6% during the fourth quarter. TIAA CREF Investment Management LLC now owns 218,576 shares of the basic materials company’s stock worth $10,824,000 after purchasing an additional 19,116 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in shares of Domtar by 13.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 102,069 shares of the basic materials company’s stock worth $5,055,000 after purchasing an additional 12,308 shares in the last quarter. Finally, Victory Capital Management Inc. grew its position in shares of Domtar by 6.4% during the fourth quarter. Victory Capital Management Inc. now owns 20,120 shares of the basic materials company’s stock worth $996,000 after purchasing an additional 1,219 shares in the last quarter. Hedge funds and other institutional investors own 93.37% of the company’s stock.

Domtar traded down $0.55, reaching $47.66, during trading on Friday, MarketBeat reports. The stock had a trading volume of 708,700 shares, compared to its average volume of 716,289. Domtar has a 52 week low of $36.29 and a 52 week high of $52.58. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.26 and a current ratio of 2.34. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 18.35, a P/E/G ratio of 2.92 and a beta of 1.66.

The business also recently declared a quarterly dividend, which will be paid on Monday, July 16th. Shareholders of record on Tuesday, July 3rd will be given a $0.435 dividend. This represents a $1.74 dividend on an annualized basis and a yield of 3.65%. The ex-dividend date is Monday, July 2nd. Domtar’s payout ratio is 66.92%.

Domtar Company Profile

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use.

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Earnings History and Estimates for Domtar (NYSE:UFS)

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