$1.43 Billion in Sales Expected for Domtar Corp (UFS) This Quarter

Equities analysts expect Domtar Corp (NYSE:UFS) (TSE:UFS) to report $1.43 billion in sales for the current quarter, Zacks Investment Research reports. Three analysts have made estimates for Domtar’s earnings, with the lowest sales estimate coming in at $1.43 billion and the highest estimate coming in at $1.44 billion. Domtar reported sales of $1.29 billion in the same quarter last year, which would indicate a positive year-over-year growth rate of 10.9%. The firm is scheduled to announce its next quarterly earnings results before the market opens on Thursday, November 1st.

On average, analysts expect that Domtar will report full year sales of $5.61 billion for the current financial year, with estimates ranging from $5.60 billion to $5.63 billion. For the next year, analysts expect that the business will report sales of $5.75 billion, with estimates ranging from $5.62 billion to $5.89 billion. Zacks’ sales calculations are a mean average based on a survey of research analysts that cover Domtar.

Domtar (NYSE:UFS) (TSE:UFS) last posted its quarterly earnings data on Wednesday, August 1st. The basic materials company reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.77 by ($0.12). The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.32 billion. Domtar had a negative net margin of 3.25% and a positive return on equity of 7.79%. The company’s revenue was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.61 EPS.



Several research firms have weighed in on UFS. ValuEngine cut shares of Domtar from a “buy” rating to a “hold” rating in a research report on Friday. Zacks Investment Research upgraded shares of Domtar from a “hold” rating to a “buy” rating and set a $55.00 price objective for the company in a research report on Friday. Citigroup lowered their price objective on shares of Domtar from $53.00 to $51.00 and set a “neutral” rating for the company in a research report on Thursday. Vertical Group cut shares of Domtar from a “buy” rating to a “hold” rating and set a $54.00 price objective for the company. in a research report on Thursday, September 13th. They noted that the move was a valuation call. Finally, Vertical Research cut shares of Domtar to a “hold” rating and set a $54.00 price objective for the company. in a research report on Thursday, September 13th. Thirteen analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Domtar currently has a consensus rating of “Hold” and a consensus price target of $47.50.

Several large investors have recently modified their holdings of the company. Bank of Montreal Can grew its position in shares of Domtar by 16.0% during the 3rd quarter. Bank of Montreal Can now owns 58,232 shares of the basic materials company’s stock worth $3,038,000 after buying an additional 8,051 shares during the period. Fox Run Management L.L.C. acquired a new stake in shares of Domtar during the 3rd quarter worth approximately $451,000. United Services Automobile Association grew its position in shares of Domtar by 16.7% during the 2nd quarter. United Services Automobile Association now owns 13,539 shares of the basic materials company’s stock worth $646,000 after buying an additional 1,942 shares during the period. Verition Fund Management LLC grew its position in shares of Domtar by 10.7% during the 2nd quarter. Verition Fund Management LLC now owns 13,630 shares of the basic materials company’s stock worth $651,000 after buying an additional 1,323 shares during the period. Finally, Putnam Investments LLC grew its position in shares of Domtar by 5.8% during the 2nd quarter. Putnam Investments LLC now owns 90,557 shares of the basic materials company’s stock worth $4,324,000 after buying an additional 4,970 shares during the period. Institutional investors own 93.31% of the company’s stock.

UFS traded up $0.35 during midday trading on Wednesday, hitting $45.16. The company had a trading volume of 605,300 shares, compared to its average volume of 645,724. The company has a current ratio of 2.31, a quick ratio of 1.31 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $3.28 billion, a PE ratio of 17.23, a PEG ratio of 2.72 and a beta of 1.57. Domtar has a twelve month low of $40.72 and a twelve month high of $54.50.

The firm also recently declared a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Tuesday, October 2nd will be given a dividend of $0.435 per share. This represents a $1.74 annualized dividend and a dividend yield of 3.85%. The ex-dividend date is Monday, October 1st. Domtar’s dividend payout ratio is 66.92%.

About Domtar

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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