Acadian Timber Q2 revenue falls

Overview

• Acadian Timber Q2 revenue of CAD 17.1 mln misses analyst expectations, per LSEG data

• Reports EPS of CAD 0.15

• Revenue decline due to absence of carbon credit sales from prior year

Outlook

• Company expects near-term sawlog demand to remain stable

• Acadian evaluating opportunities for compliance market carbon credits in Canada

• Company expects improved marketability of carbon credits with updated protocol

Result Drivers

• CARBON CREDIT IMPACT - Absence of carbon credit sales contributed to revenue decline, as prior year included CAD 19.7 mln from such sales

• MAINE OPERATIONS - Lower production in Maine due to unfavorable weather and transition to internal logging operations affected timber sales

• NEW BRUNSWICK SALES - Increased timber sales volumes in New Brunswick were offset by lower pricing and reduced timber services revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the forest & wood products peer group is "buy"

• Wall Street's median 12-month price target for Acadian Timber Corp is C$19.50, about 7.7% above its August 5 closing price of C$17.99

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX9w5rHl