Wausau Paper Corp. Second Quarter Earnings Sneak Peek

Wausau Paper Corp. (NASDAQ:WPP) will unveil its latest earnings on Monday, July 25, 2011. Wausau Paper Corporation manufactures, converts, and sells paper and paper products within three main segments: Specialty Products, Printing & Writing, and Towel & Tissue.

Wausau Paper Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 7 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 7 cents during the last month. For the year, analysts are projecting net income of 35 cents per share, a decline of 27.1% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 3 cents per share versus a mean estimate of net income of 5 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $264.9 million in revenue this quarter, a decline of 0.3% from the year ago quarter. Analysts are forecasting total revenue of $1.05 billion for the year, a decline of 0.9% from last year’s revenue of $1.06 billion.

Analyst Ratings: Analysts seem relatively indifferent about Wausau Paper with three of four analysts surveyed maintaining a hold rating.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 2.7% in the first quarter and rose 1%in the fourth quarter of the last fiscal year, 0.2% in the third quarter of the last fiscal year and 1.3% in the second quarter of the last fiscal year.

Wausau Paper’s loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $1.4 million in the first quarter, a profit of $15.2 million in the fourth quarter of the last fiscal year, a profit of $13.2 million in the third of the last fiscal year and a profit of $5.6 million in the second quarter of the last fiscal year.

Competitors to Watch: Neenah Paper, Inc. (NYSE:NP), International Paper Co. (NYSE:IP), Domtar Corp. (NYSE:UFS), P.H. Glatfelter Company (NYSE:GLT), Verso Paper Corp. (NYSE:VRS), Boise Inc. (NYSE:BZ), UPM-Kymmene Corp. (UPMKY), Clearwater Paper Corp (NYSE:CLW), Schweitzer-Mauduit Intl., Inc. (NYSE:SWM), and Sappi Limited (NYSE:SPP).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had fallen $1.14 (-15%) from $7.62 to $6.48. The stock price saw one of its best stretches over the last year between May 2, 2011 and May 13, 2011 when shares rose for 10-straight days, rising 10.4% (+69 cents) over that span. It saw one of its worst periods between June 9, 2011 and June 15, 2011 when shares fell for five-straight days, falling 7.5% (-48 cents) over that span. Shares are down $2.06 (-24.1%) year to date.

(Source: Xignite Financials)

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