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.
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 $0.51. 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.
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%, 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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