Earnings Alerts

UPM-Kymmene OYJ (UPM) Earnings: 1Q Sales Exceed Estimates with Strong EBIT Margin Despite Market Challenges

  • UPM-Kymmene’s first-quarter sales exceeded expectations, reaching €2.65 billion compared to the estimated €2.6 billion.
  • The company achieved an adjusted EBIT margin of 10.8%.
  • In Finland, UPM-Kymmene managed to remain profitable despite high wood prices, thanks to a new operating model and efficient mills.
  • UPM Specialty Papers showed strong performance, benefiting from reduced production costs.
  • Uncertainty in the business environment increased due to escalating global trade tensions towards the end of the first quarter.
  • Analyst recommendations for UPM-Kymmene include 16 buy ratings, 5 hold ratings, and 1 sell rating.

A look at UPM-Kymmene OYJ Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth3
Resilience3
Momentum2
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts at Smartkarma have assessed UPM-Kymmene OYJ‘s long-term outlook through their Smart Scores, which provide a comprehensive view of the company’s performance across various factors. With a strong score of 5 for Dividend and a solid score of 4 for Value, UPM-Kymmene OYJ is evidently positioned well to provide consistent returns to investors while being perceived as a valuable investment option. However, areas such as Growth and Resilience scored lower at 3, indicating potential areas for improvement to sustain long-term growth and withstand market challenges. Momentum, with a score of 2, suggests a need for enhanced market performance to drive positive investor sentiment.

UPM-Kymmene OYJ, a leading manufacturer of forest products, showcases a diverse portfolio including magazine papers, specialty papers, packaging materials, and wood products globally. The company’s focus on innovation and sustainability has positioned it as a key player in the industry, with a strong emphasis on product quality and market presence. While demonstrating robust dividend prospects and fundamental value, UPM-Kymmene OYJ might look to bolster growth strategies and resilience in the face of market fluctuations to further enhance its overall market momentum.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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