Clearwater Paper Earnings: Here’s Why the Stock is Up Now

Clearwater Paper Corporation (NYSE:CLW) 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 0.30%.

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Clearwater Paper Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 75% to $0.11 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 0.66% to $460.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Clearwater Paper Corporation reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.65. It missed the average revenue estimate of $465.77 million.

Quoting Management: “Net sales, volumes and pricing were strong in both the Consumer Products and Pulp & Paperboard divisions in the quarter,” said Linda Massman, chief executive officer. “However, we faced some cost challenges that we expect to abate in the second quarter. Most of these were a result of limited inventory in retail tissue, caused by more demand in the quarter than we anticipated for conventional bathroom tissue. This had a negative impact on many of our cost categories, which was approximately $9 million in the first quarter. Despite these cost pressures, we still expect to achieve our $300 million adjusted EBITDA target for 2014.”

Key Stats (on next page)…

Revenue decreased 0.41% from $462.7 million in the previous quarter. EPS decreased 86.9% from $0.84 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 $0.98 to a profit $0.91. For the current year, the average estimate has moved down from a profit of $3.64 to a profit of $3.49 over the last ninety days.

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

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