Overview

* Interfor ( IFSPF ) Q2 sales miss analyst expectations, totaling C$780.5 mln, per LSEG data

* Net earnings of C$11.1 mln in Q2, reversing losses from previous quarters

* Co completed sale of Coastal B.C. forest tenures, enhancing cash flow

Outlook

* Interfor ( IFSPF ) expects near-term lumber market volatility due to changing monetary policies

* Company anticipates higher duty rates to amplify volatility in Canadian lumber exports

* Interfor ( IFSPF ) positioned to manage volatility with diversified product mix and regional operations

* Canadian lumber expected to remain key supply source for U.S. needs in mid-term

Result Drivers

* LUMBER SHIPMENTS - Lumber shipments exceeded production by 5%, reducing inventory by 37 mln board feet

* FINANCIAL POSITION - Positive operating cash flow and reduced working capital improved financial position

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss C$780.50 C$805.60

mln mln (3

Analysts

)

Q2 Net C$11.10

Income mln

Q2 C$17.20

Adjusted mln

EBITDA

Q2 2.2%

Adjusted

EBITDA

Margin

Q2 Basic C$0.22

EPS

Q2 Net C$798

Debt mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 Interfor Corp ( IFSPF ) is C$19.00, about 34.6% above its August 6 closing price of C$12.43

* The stock recently traded at 103 times the next 12-month earnings vs. a P/E of 227 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.)