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.
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%.
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.
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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.
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%.
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.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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