The Gory Details on Clearwater Paper's Double Miss
Clearwater Paper (NYS: CLW) reported earnings on Feb. 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Clearwater Paper missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Clearwater Paper booked revenue of $466.4 million. The three analysts polled by S&P Capital IQ predicted a top line of $484.7 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $345.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.55. The four earnings estimates compiled by S&P Capital IQ forecast $0.58 per share on the same basis. GAAP EPS of $0.48 for Q4 were 70% lower than the prior-year quarter's $1.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.1%, 530 basis points worse than the prior-year quarter. Operating margin was 7%, 540 basis points worse than the prior-year quarter. Net margin was 2.5%, 840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $477.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is $3.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 61 members out of 71 rating the stock outperform, and 10 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Clearwater Paper a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwater Paper is outperform, with an average price target of $44.50.
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At the time this article 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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