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Paper Stock Earnings Coming Up This Week: SMFKY, KS, CLW
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The Paper and related products industry falls under the Basic Materials sector – one of the 16 broad Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. Taking into account the companies that are yet to report, the sector’s earnings are expected to rise 4.5% in the quarter.
The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. With this projection, total earnings for the quarter seems to be on the track to set a new quarterly record. (Read more: All-Time Record Earnings in Q4).
The world’s largest paper and pulp maker – International Paper Company (IP - Free Report) – reported a 16% drop in its fourth-quarter 2016 adjusted earnings but beat the Zacks Consensus Estimate by a couple of cents. Earnings for the full year 2016 also dropped 8% primarily due to margin pressure across most of its businesses through the year along with escalating input cost in the latter portion of the year.
With this as the backdrop, investors would be interested to see how other paper stocks fare in their upcoming releases. Apart from beats and misses, focus will be on management outlook as well.
Paper-based packaging products manufacturer, Smurfit Kappa Group plc (SMFKY - Free Report) is expected to release fourth-quarter results 2016 around Feb 8, 2017. In the last reported quarter, the company had reported a 22% increase in earnings and a 1% increase in revenues.
Over the past three months, Smurfit Kappa has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has risen 24.3% outpacing the sub industry’s gain of 19.0%.
Based on current operating conditions, Smurfit Kappa Group expects to deliver continued earnings growth and record EBITDA for 2016.
Our proven model does not conclusively show that Smurfit Kappa Group is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Smurfit Kappa’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult.
Manufacturer and seller of containerboards, corrugated products and specialty paper products, KapStone Paper and Packaging Corporation is scheduled to report fourth-quarter 2016 numbers after the market closes. In the last reported quarter, the company had reported a 9% decline in earnings while sales dipped 4% year over year.
KapStone Paper and Packaging Corporation Price and EPS Surprise
In the last quarter, the company had delivered a negative earnings surprise of 7.69%. KapStone Paper has trailed the Zacks Consensus Estimate in all of the four trailing quarters, with an average negative surprise of 20.28%.
In the past three months, KapStone Paper has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has advanced 27% outpacing the sub industry’s gain of 19%.
The company expects to realize a minimum of $3 million of its containerboard and box price increase during the fourth quarter. Box shipments will be lower than the third quarter due to seasonality and four less days. Additionally, mill shipment mix will be slightly unfavorable due to higher export containerboard and market pulp shipments.
Clearwater Paper Corporation (CLW - Free Report) , produces and sells private label tissue and bleached paperboard products in the U.S. The company is scheduled to release fourth-quarter 2016 results on Feb 8, 2017, after the market closes. In the last reported quarter, the company reported 89% plunge in earnings while sales dipped 1.6%.
Clearwater Paper Corporation Price and EPS Surprise
The company delivered a 13.33% negative earnings surprise in the last quarter. The company has a mixed track record, outpacing the Zacks Consensus Estimate in two of the four trailing quarters, while lagging in the other two, with an average negative earnings surprise of 2.00%.
In the past three months, Clearwater Paper has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has gained 22.2%, ahead of the sub industry’s increase of 19%.
For the fourth quarter, the company is anticipating revenue dollars to be down 6–8%, shipment volumes and price mix are expected to decline due to seasonality. All input cost for shipped ton will be down except for pulp and chemical costs which are expected to remain stable in the quarter.
The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult.
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Paper Stock Earnings Coming Up This Week: SMFKY, KS, CLW
The Paper and related products industry falls under the Basic Materials sector – one of the 16 broad Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. Taking into account the companies that are yet to report, the sector’s earnings are expected to rise 4.5% in the quarter.
The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. With this projection, total earnings for the quarter seems to be on the track to set a new quarterly record. (Read more: All-Time Record Earnings in Q4).
The world’s largest paper and pulp maker – International Paper Company (IP - Free Report) – reported a 16% drop in its fourth-quarter 2016 adjusted earnings but beat the Zacks Consensus Estimate by a couple of cents. Earnings for the full year 2016 also dropped 8% primarily due to margin pressure across most of its businesses through the year along with escalating input cost in the latter portion of the year.
With this as the backdrop, investors would be interested to see how other paper stocks fare in their upcoming releases. Apart from beats and misses, focus will be on management outlook as well.
Paper-based packaging products manufacturer, Smurfit Kappa Group plc (SMFKY - Free Report) is expected to release fourth-quarter results 2016 around Feb 8, 2017. In the last reported quarter, the company had reported a 22% increase in earnings and a 1% increase in revenues.
Over the past three months, Smurfit Kappa has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has risen 24.3% outpacing the sub industry’s gain of 19.0%.
Based on current operating conditions, Smurfit Kappa Group expects to deliver continued earnings growth and record EBITDA for 2016.
Our proven model does not conclusively show that Smurfit Kappa Group is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Smurfit Kappa’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult.
Manufacturer and seller of containerboards, corrugated products and specialty paper products, KapStone Paper and Packaging Corporation is scheduled to report fourth-quarter 2016 numbers after the market closes. In the last reported quarter, the company had reported a 9% decline in earnings while sales dipped 4% year over year.
KapStone Paper and Packaging Corporation Price and EPS Surprise
KapStone Paper and Packaging Corporation Price and EPS Surprise | KapStone Paper and Packaging Corporation Quote
In the last quarter, the company had delivered a negative earnings surprise of 7.69%. KapStone Paper has trailed the Zacks Consensus Estimate in all of the four trailing quarters, with an average negative surprise of 20.28%.
In the past three months, KapStone Paper has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has advanced 27% outpacing the sub industry’s gain of 19%.
The company expects to realize a minimum of $3 million of its containerboard and box price increase during the fourth quarter. Box shipments will be lower than the third quarter due to seasonality and four less days. Additionally, mill shipment mix will be slightly unfavorable due to higher export containerboard and market pulp shipments.
Though KapStone Paper’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearwater Paper Corporation (CLW - Free Report) , produces and sells private label tissue and bleached paperboard products in the U.S. The company is scheduled to release fourth-quarter 2016 results on Feb 8, 2017, after the market closes. In the last reported quarter, the company reported 89% plunge in earnings while sales dipped 1.6%.
Clearwater Paper Corporation Price and EPS Surprise
Clearwater Paper Corporation Price and EPS Surprise | Clearwater Paper Corporation Quote
The company delivered a 13.33% negative earnings surprise in the last quarter. The company has a mixed track record, outpacing the Zacks Consensus Estimate in two of the four trailing quarters, while lagging in the other two, with an average negative earnings surprise of 2.00%.
In the past three months, Clearwater Paper has outperformed the Zacks categorized Paper & Paper Products sub industry. The stock has gained 22.2%, ahead of the sub industry’s increase of 19%.
For the fourth quarter, the company is anticipating revenue dollars to be down 6–8%, shipment volumes and price mix are expected to decline due to seasonality. All input cost for shipped ton will be down except for pulp and chemical costs which are expected to remain stable in the quarter.
The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>