Wausau Paper Goes Negative

Seth Jayson, The Motley Fool
Updated

Wausau Paper (NYS: WPP) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wausau Paper met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank to a loss.

Margins shrank across the board.

Revenue details
Wausau Paper booked revenue of $252.7 million. The three analysts polled by S&P Capital IQ looked for revenue of $254.6 million. Sales were 2.9% lower than the prior-year quarter's $260.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.04. The four earnings estimates compiled by S&P Capital IQ averaged $0.04 per share on the same basis. GAAP EPS were -$0.58 for Q4 compared to $0.31 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was -6.6%, 1,840 basis points worse than the prior-year quarter. Operating margin was -14.7%, 1,700 basis points worse than the prior-year quarter. Net margin was -11.4%, 1,720 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $209.5 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $831.3 million. The average EPS estimate is $0.40.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wausau Paper is outperform, with an average price target of $7.67.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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