Wausau Paper Earnings: Here’s Why Investors are Not Excited Now

Wausau Paper Corp. (NYSE:WPP) had a loss 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 down 1%.

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Wausau Paper Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 24.49% to $190.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wausau Paper Corp. reported adjusted EPS loss of $-0.05 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $200.88 million.

Quoting Management: Henry C. Newell, president and CEO, stated, “Over the last 18 months we have focused on generating cash to fund our $220 million Tissue expansion, constructing a new tissue machine and upgrading our converting infrastructure while maintaining a conservative approach to working capital and the overall balance sheet. This investment is about to begin delivering significant value and our expectations are high as we build momentum and deliver new premium recycled tissue products later this year. We are also taking the appropriate actions in our Paper segment to explore alternatives for this business and to evaluate our near-term options for our Brainerd operations.”

Key Stats (on next page)…

Revenue decreased 5.66% from $202.25 million in the previous quarter. EPS decreased to $-0.05 in the quarter versus EPS of $0.06 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 $0.07 to a profit $0.06. For the current year, the average estimate is a profit of $0.29, which is the same with that ninety days ago.

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