Why Domtar Corp (USA) Stock Dropped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of paper and hygiene product company Domtar Corp (USA)  (NYSE: UFS  ) fell 11% today after reporting preliminary quarterly results.

So what: Management said this morning that sales in the quarter were $1.39 billion and net income rose slightly to $40 million, or $0.61 per share. The problem is that Wall Street had set estimates at $1.48 billion and earnings of $0.87 per share, so the company is performing well below what analysts and investors were expecting.  

Now what: Maintenance in pulp mills and higher raw material costs for personal care products dragged on results and led to the lower-than-expected profits. New products are also still coming down the pipeline but have yet to impact results for Domtar. While the results may not have impressed investors, there's still growth on the horizon, and with shares trading at just 14.5 times trailing earnings, I think this dip offers a nice buying opportunity for investors eyeing the stock. (NASDAQ: AAPL  )

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3043435, ~/Articles/ArticleHandler.aspx, 9/1/2015 6:35:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated Moments ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:01 PM
UFS $38.61 Down -1.60 -3.98%
Domtar Corp. (USA) CAPS Rating: *****