Wall Street analysts predict that Domtar Corp (NYSE:UFS) (TSE:UFS) will report earnings of $0.64 per share for the current quarter, Zacks Investment Research reports. Two analysts have made estimates for Domtar’s earnings, with the lowest EPS estimate coming in at $0.55 and the highest estimate coming in at $0.73. Domtar posted earnings per share of $1.46 in the same quarter last year, which would indicate a negative year over year growth rate of 56.2%. The firm is scheduled to issue its next quarterly earnings report on Thursday, November 7th.
On average, analysts expect that Domtar will report full year earnings of $3.11 per share for the current year, with EPS estimates ranging from $2.80 to $3.40. For the next fiscal year, analysts anticipate that the firm will post earnings of $3.13 per share, with EPS estimates ranging from $2.25 to $3.50. Zacks’ EPS averages are a mean average based on a survey of research analysts that cover Domtar.
Domtar (NYSE:UFS) (TSE:UFS) last issued its earnings results on Thursday, August 1st. The basic materials company reported $0.57 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.87 by ($0.30). Domtar had a return on equity of 12.48% and a net margin of 5.21%. The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the prior year, the company posted $0.65 earnings per share. Domtar’s quarterly revenue was down 2.7% compared to the same quarter last year.
Several equities research analysts have weighed in on UFS shares. Scotiabank set a $45.00 target price on Domtar and gave the stock a “hold” rating in a report on Friday, August 30th. Vertical Research cut Domtar from a “buy” rating to a “hold” rating in a report on Tuesday, July 2nd. TheStreet cut Domtar from a “b” rating to a “c+” rating in a report on Thursday, August 1st. Stephens set a $53.00 price objective on Domtar and gave the stock a “buy” rating in a research note on Friday, June 28th. Finally, TD Securities decreased their price objective on Domtar from $48.00 to $43.00 and set a “hold” rating for the company in a research note on Friday, August 2nd. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $49.62.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Hancock Whitney Corp lifted its stake in shares of Domtar by 22.5% during the 2nd quarter. Hancock Whitney Corp now owns 80,887 shares of the basic materials company’s stock worth $3,601,000 after purchasing an additional 14,861 shares during the last quarter. Nomura Holdings Inc. purchased a new stake in shares of Domtar during the 2nd quarter worth $443,000. BlackRock Inc. lifted its stake in shares of Domtar by 2.0% during the 2nd quarter. BlackRock Inc. now owns 8,330,116 shares of the basic materials company’s stock worth $370,941,000 after purchasing an additional 164,720 shares during the last quarter. Natixis lifted its stake in shares of Domtar by 13.5% during the 2nd quarter. Natixis now owns 101,617 shares of the basic materials company’s stock worth $4,525,000 after purchasing an additional 12,054 shares during the last quarter. Finally, Maverick Capital Ltd. purchased a new stake in shares of Domtar during the 2nd quarter worth $1,082,000. Hedge funds and other institutional investors own 95.10% of the company’s stock.
Shares of UFS stock traded up $0.13 during mid-day trading on Tuesday, hitting $34.41. The stock had a trading volume of 1,268,192 shares, compared to its average volume of 642,316. Domtar has a 12-month low of $31.72 and a 12-month high of $54.17. The firm has a market capitalization of $2.15 billion, a P/E ratio of 7.46 and a beta of 1.97. The firm’s 50-day moving average is $34.34 and its two-hundred day moving average is $42.89. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.20 and a quick ratio of 1.09.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Wednesday, October 2nd will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 5.29%. The ex-dividend date is Tuesday, October 1st. Domtar’s dividend payout ratio (DPR) is currently 39.48%.
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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