RAYONIER ADVANCED MATERIALS Reports Lower-Than-Expected Non-GAAP EPS Despite Higher-Than-Expected Revenue

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Rayonier Advanced Materials ($NYSE:RYAM) recently reported their first quarter earnings, and while their revenue was higher than expected at $467M, their Non-GAAP Earnings Per Share of $0.05 was $0.04 lower than expected. Rayonier Advanced Materials is a leading global manufacturer of forest products, including lumber, paper and packaging products. The company produces specialty cellulose fibers, which are used in a variety of consumer and industrial products. Despite the lower-than-expected earnings, Rayonier Advance Materials was able to report higher-than-expected revenue. Boynton also noted the company’s investments in new product development, which he believes will continue to drive growth over the long-term.

Rayonier Advanced Materials is continuing to invest in its business, with plans to increase its production capacity and efficiency. The company is also focused on the sustainability of its operations and is committed to reducing its environmental footprint. The company is continuing to invest in its operations and plans to increase its production capacity and efficiency in order to drive long-term growth.

Earnings

The report revealed a 33.7% increase in total revenue compared to the same period the year before to 500.0M USD, as well as a 116.7% decrease in net income to 4.0M USD. Furthermore, the total revenue of RAYONIER ADVANCED MATERIALS has declined from 508.0M USD to 500.0M USD in the last 3 years. This is a concerning decrease considering the higher-than-expected revenue reported in the same period.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for RYAM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for RYAM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for RYAM. More…

Key Ratios Snapshot

Some of the financial key ratios for RYAM are shown below. More…

Price History

The company’s stock opened at $5.5 and closed at the same price, down by 1.1% from its last closing price. The market saw the disappointing results as a sign of caution, reflecting the uncertainty surrounding the company’s future prospects. Despite the weak earnings report, RAYONIER ADVANCED MATERIALS reported better-than-expected revenue, indicating that growth is still on track. This was a positive sign in light of the challenging market conditions.

Overall, the market sentiment towards RAYONIER ADVANCED MATERIALS was weak following the release of its earnings report. Despite its higher-than-expected revenue, the company reported lower-than-expected Non-GAAP EPS, which raised doubts about its financial health going forward. Investors will be closely watching the company’s performance in the coming quarters for more clarity on its outlook. Live Quote…

Analysis

At GoodWhale, we recently performed an analysis of RAYONIER ADVANCED MATERIALS’s fundamentals. According to our Star Chart, RAYONIER ADVANCED MATERIALS is strong in terms of assets, but medium in terms of growth, profitability and dividend. Its intermediate health score of 6/10 with regard to its cashflows and debt suggests that the company is likely to sustain future operations in times of crisis. Given these characteristics, we classify RAYONIER ADVANCED MATERIALS as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors interested in this type of company may include those looking for higher-risk, higher-return investments who are willing to risk capital in exchange for potentially greater gains. More…

Peers

The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.

– Altech Chemicals Ltd ($ASX:ATC)

Altech Chemicals Ltd is an Australian-based chemicals company. The Company is engaged in the business of developing and commercializing technologies for the production of alumina from non-bauxite sources. It has developed the HPA production process, which is a hydrometallurgical process that converts raw materials, including kaolin clay, into alumina. The Company’s HPA production process involves the digestion of kaolin clay with hydrochloric acid, precipitation of aluminum hydroxide from the solution, calcination of the aluminum hydroxide to produce alumina, and cooling and washing of the product to produce a white powder known as alumina trihydrate.

– Supreme Petrochem Ltd ($LTS:0W1E)

Nanogate SE is a Germany-based company that develops, produces, and sells nanoscale coatings, surface treatments, and additives. It operates in three segments: Automotive, Industry, and Home. The Automotive segment provides solutions for the automotive industry, such as for the exterior and interior of vehicles. The Industry segment offers solutions for the electronics, optics, and plastics industries, among others. The Home segment provides solutions for the kitchen and bathroom industry, among others.

Summary

Rayonier Advanced Materials (RYAM) is a leading global producer of high-performance specialty cellulose, paper pulp, and wood products. The stock has sold off in response to the earnings results, and investors should watch for further developments with the company going forward.