Overview

* Magnera ( MAGN ) fiscal Q3 net sales rise 51% yr/yr, missing analyst expectations

* Adjusted EBITDA for fiscal Q3 up 23%, but missed estimates

* Company confirms post-merger adjusted free cash flow and EBITDA range

Outlook

* Company confirms original free cash flow guidance and adjusted EBITDA range

* Company commiteed to strengthen credit metrics by paying down debt

Result Drivers

* GLATFELTER MERGER - Merger contributed $320 mln to net sales and $23 mln to adjusted EBITDA

* ORGANIC VOLUME DECLINE - 5% decline in organic volume due to market softness in Europe and competitive pressures in South America

* PRICE/COST SPREAD - Unfavorable impacts from price/cost spread affected adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $839.84 $842 mln

trln (2

Analysts

)

Q2 Miss $61 mln $94.50

Adjusted mln (2

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the textiles & leather goods peer group is "buy."

* Wall Street's median 12-month price target for Magnera Corp ( MAGN ) is $14.00, about 13.1% above its August 5 closing price of $12.16

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 11 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.)