The 10-second takeaway
For the quarter ended March 31 (Q1), Clearwater Paper missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins improved, net margins contracted.
Clearwater Paper tallied revenue of $457.8 million. The three analysts polled by S&P Capital IQ expected sales of $465.4 million on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $465.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The five earnings estimates compiled by S&P Capital IQ anticipated $0.41 per share. GAAP EPS of $0.16 for Q1 were 33% lower than the prior-year quarter's $0.24 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 12.0%, 110 basis points better than the prior-year quarter. Operating margin was 5.6%, 50 basis points better than the prior-year quarter. Net margin was 0.8%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $470.6 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $1.88 billion. The average EPS estimate is $2.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 65 members out of 76 rating the stock outperform, and 11 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Clearwater Paper a green thumbs-up, and 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 $45.75.
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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.