KapStone Paper and Packaging Earnings: Everything You Must Know Now

KapStone Paper and Packaging Corporation (NYSE:KS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

KapStone Paper and Packaging Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.28 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 12% to $301 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KapStone Paper and Packaging Corporation reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.27. It missed the average revenue estimate of $302.9 million.

Quoting Management: Roger W. Stone, Chairman and Chief Executive Officer, stated, “Fourth quarter completed a transformational year for KapStone as we successfully integrated our 2011 acquisition of U.S. Corrugated. The acquisition has been a significant contributor to KapStone’s earnings this year, and we expect additional benefits in 2013. Average mill revenue per ton increased during the quarter by approximately $14 to $634 as our fall domestic containerboard price increase was fully implemented by the end of the quarter. Our corrugated operations realized the benefits from their fall price increase with most of the increase implemented by December. In the fourth quarter, we completed major planned maintenance at two of our mills which resulted in the loss of 12,500 tons of production. For the year, our mills ran very well, and our legacy mills achieved an all-time production record for the year of 1.32 million tons.”

Key Stats (on next page)…

Revenue decreased 2.76% from $309.54 million in the previous quarter. EPS decreased 30% from $0.40 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 $0.49 to a profit $0.48. For the current year, the average estimate has moved down from a profit of $1.46 to a profit of $1.45 over the last ninety days.

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