NEW YORK (TheStreet) -- Shares of Domtar (UFS) - Get Report are soaring 13.08% to $39.95 on heavy trading volume late Wednesday afternoon after the company reported higher-than-expected earnings and revenue for the 2016 second quarter.
Before today's opening bell, the Fort Mill, SC-based company posted adjusted earnings of 61 cents per share, surpassing analysts' forecasts of 13 cents per share.
Revenue for the quarter was $1.27 billion, above analysts' estimates of $1.26 billion.
"Our focus on costs and execution resulted in below-plan maintenance spending, and we benefited from higher pulp and paper prices with the implementation of recently announced price increases," CEO John Williams said in a statement.
Domtar manufactures and distributes a variety of pulp, paper and personal care products.
About 1.17 million of the company's shares changed hands today vs. its average 30-day volume of 506,355 shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: UFS