Sylvamo reports Q3 EPS $1.70, consensus $1.33

Reports Q3 Free cash flow non-GAAP of $155M vs. $33 M….Third quarter earnings were higher than our outlook. We took measures to maximize free cash flow, including selling and administrative cost reductions, shrinking working capital and adjusting the timing of capital spending. We now expect free cash flow for the year to be more than $270 M. By the end of the third quarter, we returned $85M to shareowners this year. In the third quarter, we also deposited $60M in escrow to remove cash return limits in our credit agreement. As of Nov. 9, we have returned $110M this year and plan to return a total of $125 Min 2023. ..In the spirit of continuous improvement, we initiated a cost reduction program called Project Horizon. The project will streamline our organization and cost structures and make us a leaner, stronger company. Before inflation, we are targeting run rate savings of at least $110 M by the end of 2024. Approximately two-thirds of the target will come from operational improvements in our mills and supply chains. The balance will consist of selling and administrative cost reductions, including the elimination of approximately 150 positions, or nearly 7% of our global salaried workforce.