RFP - Why Resolute Forest Products Stock Plunged 22% Today
Shares of Resolute Forest Products (NYSE: RFP) , which has a diversified forest products business that produces a broad range of products from lumber to pulp, fell a dramatic 22% on Feb. 3. The big news was the company's fourth-quarter 2021 earnings update, which investors clearly did not like.
On the top line, Resolute Forest Products generated sales of $834 million in the fourth quarter of 2021, up roughly 8.5% from the same quarter of 2020. That number was well short of the $1.1 billion analysts had been expecting. The company also missed on the bottom line, where it reported adjusted earnings per share of $0.48. That was down from $0.55 in the prior year and far lower than the $0.99 for which analysts had been looking. Investors don't like it when companies miss Wall Street's numbers, so it's not surprising that the stock sold off.
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Why Resolute Forest Products Stock Plunged 22% Today