Boise Earnings: Here’s Why Investors Like These Results

Boise Inc. (NYSE:BZ) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.69%.

Boise Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 28.57% to $0.1 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 2.53% to $621.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Boise Inc. reported adjusted EPS income of $0.1 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $626.34 million.

Quoting Management: “We grew both sales and margins in our Packaging business during second quarter. However, prices declined during the quarter in Paper,” said Alexander Toeldte, president and chief executive officer. “The two, large strategic projects we announced in May are both proceeding as planned. At our mill in DeRidder, Louisiana, the conversion of an idled newsprint machine to lightweight linerboard and medium is on schedule and budget. Likewise, the closure of the machines in International Falls is progressing smoothly and on schedule for completion in early fourth quarter 2013. We continue to believe both these projects will enhance not only the competitiveness of these mills but also the competitiveness of the company overall.”

Key Stats (on next page)…

Revenue increased 2.42% from $607.02 million in the previous quarter. EPS increased 400% from $0.02 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $0.74 to a profit of $0.63 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)