10:48 AM EST, 03/08/2024 (MT Newswires) -- National Bank said Thursday that KP Tissue Inc. ( KPTSF ) reported fourth-quarter revenue of $482.3 million, up 5.3% year over year but below the NBF $497 million estimate.

The consensus estimate for revenue was $485.3 million.

Adjusted EBITDA margins expanded 300 basis points year over year to 12.7% with adjusted EBITDA of $61.2 million, slightly soft

versus the NBF estimate for $63.2 million and the Street's $63.6 million mainly because of higher corporate costs.

For the first quarter, National Bank is expecting adjusted EBITDA to be in the same range as Q4's $61.2 million, on stable

margins. "This is largely in line with the Street's call for $60 million in Adj. EBITDA on 12.5% margins, and our $61 million," the analysts said.

"Higher expected pulp costs see our target slide to $9 (was $9.50), based on an unchanged 8.0x 2025e EV/EBITDA multiple. Though we remain constructive on normalizing consumer purchasing patterns and the recovery in AFH margins, we reiterate our Sector Perform rating given the modest return to target," the analysts said.

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