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Clearwater Paper (CLW) Q4 Earnings Miss Estimates, Decline Y/Y
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Clearwater Paper Corporation (CLW - Free Report) reported an adjusted loss of 30 cents per share in fourth-quarter 2022, which was wider than the Zacks Consensus Estimate of a loss of 9 cents. CLW had reported earnings of 82 cents per share in the prior-year quarter. The downside was driven by operational and weather-related issues that impacted paperboard operations. Planned major maintenance at the Lewiston, ID facility also impacted results.
Including one-time items, the company reported a loss of 34 cents per share against earnings of 56 cents per share in the prior-year quarter.
The company generated revenues of $527 million in fourth-quarter 2022, reflecting year-over-year growth of 7.6%. The top-line figure surpassed the Zacks Consensus Estimate of $518 million.
Clearwater Paper Corporation Price, Consensus and EPS Surprise
The cost of sales was $491 million, up 14.5% year over year. Gross profit declined 41.5% year over year to $36 million. The gross margin was 6.8% in the reported quarter, marking a 560-basis-point contraction the prior-year quarter.
Selling, general and administrative expenditure increased 9.8% to $34 million from the year-ago quarter. Adjusted EBITDA was $28 million in the reported quarter, which declined 50% from the prior-year quarter. The adjusted EBITDA margin was 5.3% compared with 11.4% in the year-ago quarter.
Segmental Performance
Consumer Products: Net sales increased 9.5% year over year to $254 million from the prior-year quarter. The segment reported adjusted EBITDA of $18 million, an 125% increase from $8 million reported in the last year’s comparable quarter, attributable to higher sales prices and volumes, which was partially offset by higher input costs, primarily pulp and energy.
Pulp and Paperboard: Net sales improved 5% year over year to $274 million. Adjusted EBITDA was $27 million in the reported quarter, down from $62 million in the prior-year quarter, owing to higher input costs and operational issues, somewhat offset by higher sales prices.
Financial Position
Clearwater Paper’s cash and cash equivalents were $54 million at the end of 2022 compared with $25 million at the end of 2021. Operating cash flow was $150 million in 2022, marking an increase from $96 million in the prior year. The company’s long-term debt was $565 million as of Dec 31, 2022, down from $638 million as of Dec 31, 2021.
2022 Results
Clearwater Paper’s adjusted earnings per share surged 252% year-over-year to $3.63 in 2022. The bottom line, however, missed the Zacks Consensus Estimate of $3.90. Including one-time items, the company delivered earnings per share of $2.68 in 2022 against a loss per share of $1.67 in 2021.
Sales increased 16.7% year over year to $2.08 billion and beat the Zacks Consensus Estimate of $2.07 billion.
Price Performance
Over the past year, Clearwater Paper’s shares have gained 10.8% against the industry’s fall of 19.6%.
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently flaunt a Zacks Rank #1, and TECK carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 42.7% in a year.
The Zacks Consensus Estimate for Teck Resources Limited’s 2022 earnings per share is pegged at $7.06, suggesting 56.1% growth from the year-ago reported figure. Earnings estimates have moved 3.4% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 16.3% in the past year.
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Clearwater Paper (CLW) Q4 Earnings Miss Estimates, Decline Y/Y
Clearwater Paper Corporation (CLW - Free Report) reported an adjusted loss of 30 cents per share in fourth-quarter 2022, which was wider than the Zacks Consensus Estimate of a loss of 9 cents. CLW had reported earnings of 82 cents per share in the prior-year quarter. The downside was driven by operational and weather-related issues that impacted paperboard operations. Planned major maintenance at the Lewiston, ID facility also impacted results.
Including one-time items, the company reported a loss of 34 cents per share against earnings of 56 cents per share in the prior-year quarter.
The company generated revenues of $527 million in fourth-quarter 2022, reflecting year-over-year growth of 7.6%. The top-line figure surpassed the Zacks Consensus Estimate of $518 million.
Clearwater Paper Corporation Price, Consensus and EPS Surprise
Clearwater Paper Corporation price-consensus-eps-surprise-chart | Clearwater Paper Corporation Quote
The cost of sales was $491 million, up 14.5% year over year. Gross profit declined 41.5% year over year to $36 million. The gross margin was 6.8% in the reported quarter, marking a 560-basis-point contraction the prior-year quarter.
Selling, general and administrative expenditure increased 9.8% to $34 million from the year-ago quarter. Adjusted EBITDA was $28 million in the reported quarter, which declined 50% from the prior-year quarter. The adjusted EBITDA margin was 5.3% compared with 11.4% in the year-ago quarter.
Segmental Performance
Consumer Products: Net sales increased 9.5% year over year to $254 million from the prior-year quarter. The segment reported adjusted EBITDA of $18 million, an 125% increase from $8 million reported in the last year’s comparable quarter, attributable to higher sales prices and volumes, which was partially offset by higher input costs, primarily pulp and energy.
Pulp and Paperboard: Net sales improved 5% year over year to $274 million. Adjusted EBITDA was $27 million in the reported quarter, down from $62 million in the prior-year quarter, owing to higher input costs and operational issues, somewhat offset by higher sales prices.
Financial Position
Clearwater Paper’s cash and cash equivalents were $54 million at the end of 2022 compared with $25 million at the end of 2021. Operating cash flow was $150 million in 2022, marking an increase from $96 million in the prior year. The company’s long-term debt was $565 million as of Dec 31, 2022, down from $638 million as of Dec 31, 2021.
2022 Results
Clearwater Paper’s adjusted earnings per share surged 252% year-over-year to $3.63 in 2022. The bottom line, however, missed the Zacks Consensus Estimate of $3.90.
Including one-time items, the company delivered earnings per share of $2.68 in 2022 against a loss per share of $1.67 in 2021.
Sales increased 16.7% year over year to $2.08 billion and beat the Zacks Consensus Estimate of $2.07 billion.
Price Performance
Over the past year, Clearwater Paper’s shares have gained 10.8% against the industry’s fall of 19.6%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Clearwater Paper currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently flaunt a Zacks Rank #1, and TECK carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 42.7% in a year.
The Zacks Consensus Estimate for Teck Resources Limited’s 2022 earnings per share is pegged at $7.06, suggesting 56.1% growth from the year-ago reported figure. Earnings estimates have moved 3.4% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 16.3% in the past year.