Resolute Forest Products (RFP) Misses Q4 EPS by 50c

Resolute Forest Products (NYSE: RFP) reported Q4 EPS of $0.48, $0.50 worse than the analyst estimate of $0.98. Revenue for the quarter came in at $834 million versus the consensus estimate of $1.1 billion.

Outlook:
Mr. Lalonde added: “As the Omicron wave passes, the weather softens and knots in the logistics system loosen, we should see a recalibration toward a more normal business environment. It could, however, take several months, especially for the transportation network, and it is unclear how much of the input costs inflation will remain. Benchmark lumber prices started the year strong, and we expect that the combination of encouraging underlying fundamentals, higher cost structures and higher softwood lumber duty rates will contribute to above trend prices for some time. After slipping marginally in the fourth quarter, we expect realized transaction prices for market pulp to improve in the first quarter, largely due to limited availability of supply. The higher operating rates and the price recovery in printing and writing paper markets, which should continue, will support our cash generation strategy for the segment. In the case of pulp and paper in particular, pricing improvements will mitigate the effect of rising cost pressures. We anticipate better performance from our pulp and paper operations with the indefinite idling of the Calhoun pulp and paper assets, which, despite the loss of pulp integration benefits in the tissue segment, will contribute a net positive for all of Resolute. In tissue, we expect the retail market to continue its recovery and the away-from-home market to remain sluggish for some time. Following the indefinite idling of pulp and paper operations at Calhoun and as markets continue to stabilize, we are reviewing strategic options for the tissue segment.”

For earnings history and earnings-related data on Resolute Forest Products (RFP) click here.

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