The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Clearwater Paper met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins expanded across the board.
Clearwater Paper logged revenue of $480.2 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $477.2 million on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $501.1 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 $0.80. The six earnings estimates compiled by S&P Capital IQ forecast $0.89 per share. GAAP EPS of $0.80 for Q3 were 116% higher than the prior-year quarter's $0.37 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 14.7%, 430 basis points better than the prior-year quarter. Operating margin was 8.3%, 320 basis points better than the prior-year quarter. Net margin was 4.0%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $467.6 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $2.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 61 members out of 72 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 $45.13.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.