Wausau Paper Corp. Third Quarter Earnings Sneak Peek

Wausau Paper Corp. (NYSE:WPP) will unveil its latest earnings on Monday, October 29, 2012. Wausau Paper manufactures, converts, and sells paper and paper products.

Wausau Paper Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 6 cents per share, a decline of 45.5% 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 17 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 13 cents during the last month. Analysts are projecting profit to rise by 16% compared to last year’s 29 cents.

Past Earnings Performance: Last quarter, the company met expectations by reporting profit of 9 cents per share last quarter. In the previous first quarter, the company beat estimates by 5 cents.

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A Look Back: In the second quarter, the company swung to a loss of $1.3 million (3 cents a share) from a profit of $3.2 million (7 cents) a year earlier, meeting analyst expectations. Revenue fell 20.3% to $212.9 million from $267.1 million.

Wall St. Revenue Expectations: On average, analysts predict $209.6 million in revenue this quarter, a decline of 21.2% from the year-ago quarter. Analysts are forecasting total revenue of $850.2 million for the year, a decline of 17.5% from last year’s revenue of $1.03 billion.

Stock Price Performance: Between September 25, 2012 and October 23, 2012, the stock price dropped 77 cents (-8.2%), from $9.44 to $8.67. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 4.9% (+44 cents) over that span. It saw one of its worst periods between July 17, 2012 and July 25, 2012 when shares fell for seven straight days, dropping 10.1% (-$1) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 3% in the third quarter of the last fiscal year, 2.9% in fourth quarter of the last fiscal year and 13.2% in the first quarter and then fell again in the second quarter.

Analyst Ratings:

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.42 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.45 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7% to $137.8 million while assets rose 5.2% to $196 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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