Rayonier Advanced Materials-RYAM Set to Report Q4 Earnings: What to Expect From the Stock?

Core Viewpoint - Rayonier Advanced Materials (RYAM) is anticipated to show improvements in both revenue and loss figures in its upcoming fourth-quarter 2024 results [1] Financial Performance - The Zacks Consensus Estimate for RYAM's fourth-quarter revenues is $436 million, reflecting a 3.3% increase from the previous year [2] - The expected loss for the fourth quarter is 12 cents per share, an improvement from the loss of 22 cents per share reported in the same quarter last year [2] - RYAM's net sales for 2024 decreased by 0.2% to$ 1.639 billion, with fourth-quarter sales projected at $431 million, indicating a 2% year-over-year growth from$ 422 million in Q4 2023 [9] - The company reported a loss from continuing operations of $43 million in 2024, improving from a loss of$ 102 million in the prior year, with an anticipated loss of $17 million for Q4 2024 [10] - Adjusted EBITDA for 2024 was$ 222 million, a 60% increase year-over-year, with an expected adjusted EBITDA of $51 million for Q4 2024, suggesting a 38% increase from the previous year's quarter [11] Market Dynamics - RYAM has been enhancing its product mix and managing operating costs effectively, leading to improved results [12] - Average sales prices for cellulose specialties are expected to rise, driven by increased demand and the closure of a competitor's plant [12] - Lower paperboard prices in Q4 are expected to be offset by increased sales volumes, while high-yield-pulp prices are anticipated to decline [13] - An isolated fire at the company's plant in Jesup, GA, is expected to impact earnings by$ 10 million, although the plant resumed operations in less than two weeks [13] Stock Performance - RYAM shares have increased by 60% over the past year, outperforming the industry growth of 40.1% [14]