Wausau Paper Corp. Earnings: Swung to a Loss
Wausau Paper Corp. (NYSE:WPP) reported its results for the third quarter. Wausau Paper manufactures, converts, and sells paper and paper products.
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Wausau Paper Corp. Earnings Cheat Sheet
Results: Reported a loss of $5.3 million (11 cents per diluted share) in the quarter. Wausau Paper Corp. had a net income of $5.2 million or 10 cents per share in the year-earlier quarter.
Actual vs. Wall St. Expectations: Wausau Paper Corp. reported adjusted net income of 6 cents per share. By that measure, the company fell in line with the mean estimate of 6 cents per share.
Quoting Management: Henry C. Newell, president and CEO, commenting on the Company’s continued progress against strategic initiatives, said, “Our Tissue expansion is on track as three to four percent case shipment growth continues to drive improving operating margins, now approaching 13 percent. The second half is proving to be a challenge for our Paper segment, as we see slowing demand in industrial and tape markets at a time when we are commercializing new technical capacity at our Brainerd, Minnesota, facility. Despite these pressures, technical volumes are up six percent this year and specifically, tape sector volume is up 14 percent, the result of new customer business and new product introductions.”
The company has now fallen in line with estimates for the past two quarters. It reported net income of 9 cents in the second quarter.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 7 cents per share to 4 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 43 cents a share to 29 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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