The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Clearwater Paper missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Clearwater Paper booked revenue of $466.4 million. The three analysts polled by S&P Capital IQ predicted a top line of $484.7 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $345.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.55. The four earnings estimates compiled by S&P Capital IQ forecast $0.58 per share on the same basis. GAAP EPS of $0.48 for Q4 were 70% lower than the prior-year quarter's $1.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.1%, 530 basis points worse than the prior-year quarter. Operating margin was 7%, 540 basis points worse than the prior-year quarter. Net margin was 2.5%, 840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $477.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is $3.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 61 members out of 71 rating the stock outperform, and 10 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Clearwater Paper a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwater Paper is outperform, with an average price target of $44.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.