The 10-second takeaway
For the quarter ended June 30 (Q2), Clearwater Paper met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Clearwater Paper booked revenue of $471.0 million. The three analysts polled by S&P Capital IQ looked for sales of $477.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
EPS came in at $0.51. The four earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. Non-GAAP EPS of $0.51 for Q2 were 47% lower than the prior-year quarter's $0.96 per share. GAAP EPS of $0.52 for Q2 were 43% lower than the prior-year quarter's $0.91 per share.
For the quarter, gross margin was 12.0%, 380 basis points worse than the prior-year quarter. Operating margin was 6.3%, 330 basis points worse than the prior-year quarter. Net margin was 2.5%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $508.0 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $2.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 59 members out of 70 rating the stock outperform, and 11 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 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 buy, with an average price target of $60.67.
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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 position in any of the stocks mentioned. 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.