Overview

* Acadian Timber ( ACAZF ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$17.10 C$24.70

Revenue mln mln (1

Analyst)

Q2 EPS C$0.15

Q2 Net C$2.70

Income mln

Q2 C$2.40

Adjusted mln

EBITDA

Q2 14.0%

Adjusted

EBITDA

Margin

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 ( ACAZF ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)