In today’s briefing:
- ECVT: Investing for 2024
- ACCO: Sales Retraction Creates Headwinds
- HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction
- Rayonier Advanced Materials, Inc. – Investor Day Highlights “Specialty” In Specialty Cellulose
- UI: Surprise Revenue Miss, PT to $160
ECVT: Investing for 2024
- ECVT has navigated a challenging 2023, marked by unforeseen external factors that have made accurate quarterly forecasting a formidable task
- As the year comes to a close, ECVT is seizing an opportunity during the seasonal refinery downtime to expedite its capital expenditure plans from 2024.
- ECVT reported third quarter sales of $173.3 million compared to our estimate of $171.3 million. The miss was the result of greater than expected slowdown in ecoservices segment
ACCO: Sales Retraction Creates Headwinds
- ACCO reported third quarter results without the expected back to school benefit. Instead, ACCO focused on profitable sales helping to lift gross margin and report higher earnings results
- Retailers continue to tightly manage their inventory levels and the trend is expected to remain in the fourth quarter.
- ACCO remains a free cash flow investment story. We are not expecting growth in 2024 putting greater pressure on how much free cash flow ACCO can generate
HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction
- This note corrects the version that was published on November 2. Due to errors in our model, the full-year estimate for 2024 was not calculated properly.
- The correct full-year 2024 EPS estimate is $2.65.
- We are raising our non-GAAP (adjusted) EPS estimates for 4Q23 and 2024 following HNI’s strong 3Q23 earnings report on Tuesday, October 31, 2023.
Rayonier Advanced Materials, Inc. – Investor Day Highlights “Specialty” In Specialty Cellulose
- Portfolio strength and market weakness. At a recently held Investor Day, RYAM management highlighted its cellulose product portfolio, the company’s biomaterials initiative, and the current state of the industry in the wake of the G-P closure announcement.
- RYAM also provided an update on 2023 guidance and a look at 2024 and 2027 EBITDA bridges.
- Asset evaluation proceeding to the next round. Following the Investor Day, RYAM announced that it engaged Houlihan Lokey as its financial advisor to explore the potential sale of its paperboard and high-yield pulp (HYP) assets located at its Temiscaming site, as it advances its initiative to expand into higher-growth, higher-margin specialty businesses and reduce its exposure to commodity cellulose markets.
UI: Surprise Revenue Miss, PT to $160
- UI fiscal first-quarter results (September) fell short of consensus estimates, primarily due to underperforming sales in the enterprise segment.
- Our initial expectations included the anticipation of soft demand for Ubiquiti, which was compounded by our belief in the enterprise spending momentum continuing
- Ubiquiti’s fiscal first-quarter revenue came in at $463.1 million, falling short of our estimate of $547.9 million. Historically, the quarter has been a strong period, making this deviation particularly noteworthy
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