Over the past 90 days, Clearwater Paper Corporation (CLW - Free Report) has grossly underperformed the Zacks categorized Paper & Paper Products industry due to continued macroeconomic headwinds. This Zacks Rank #5 (Strong Sell) has an average return of 1.9% for the last 90 days compared with 8.2% for the industry. It appears to be grappling with numerous challenges that are likely to weigh on its performance in the forthcoming quarters as well.
The earnings estimates of the company for the current quarter have declined 24.6% in the last 90 days to 89 cents per share with significant downward estimate revisions. The earnings estimates for the current year have also reduced 9.1% from $3.62 to $3.29 per share in the last 90 days, signifying negative investor confidence.
In order to optimize its operations through better asset utilization and improve its lackluster performance, Clearwater has recently decided to permanently close its Oklahoma City converting facility along with two of its tissue machines that are currently operating at the tissue facility in Neenah, WI. The Oklahoma facility, which converts tissue in to packaged products, is likely to run till Mar 31, 2017.
The machine shutdown will reduce production capacity at the Winconsin facility by 32,000 tons from the beginning of 2017. The facility will then operate three remaining tissue machines to manufacture a whole range of tissue products.
While the permanent closure will affect 131 employees at the Oklahoma facility, about 85 employees will be affected by the machine shutdown at the Winconsin facility. Clearwater intends to assist the retrenched employees in vocational training and other educational benefits to enable them to get employed as early as possible. The company expects the restructuring actions to save $7–$9 million in 2017.
Clearwater manufactures diversified paper and related products including, consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp. The company sells these products to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. The company also manufactures bleached paperboard used by quality-conscious printers and packaging converters.
Some better-ranked stocks in the industry include Fibria Celulose S.A. , Gerdau S.A. (GGB - Free Report) and Israel Chemicals Ltd. (ICL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fibria Celulose has beaten estimates thrice in the trailing four quarters for an average earnings surprise of 24.6%.
Gerdau has a forward P/E (F1) of 85.6x.
Israel Chemicals has long-term earnings growth expectation of 1.6% and has beaten estimates twice in the trailing four quarters for an average positive earnings surprise of 15.3%.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Over the past 90 days, Clearwater Paper Corporation (CLW - Free Report) has grossly underperformed the Zacks categorized Paper & Paper Products industry due to continued macroeconomic headwinds. This Zacks Rank #5 (Strong Sell) has an average return of 1.9% for the last 90 days compared with 8.2% for the industry. It appears to be grappling with numerous challenges that are likely to weigh on its performance in the forthcoming quarters as well.
The earnings estimates of the company for the current quarter have declined 24.6% in the last 90 days to 89 cents per share with significant downward estimate revisions. The earnings estimates for the current year have also reduced 9.1% from $3.62 to $3.29 per share in the last 90 days, signifying negative investor confidence.
In order to optimize its operations through better asset utilization and improve its lackluster performance, Clearwater has recently decided to permanently close its Oklahoma City converting facility along with two of its tissue machines that are currently operating at the tissue facility in Neenah, WI. The Oklahoma facility, which converts tissue in to packaged products, is likely to run till Mar 31, 2017.
The machine shutdown will reduce production capacity at the Winconsin facility by 32,000 tons from the beginning of 2017. The facility will then operate three remaining tissue machines to manufacture a whole range of tissue products.
While the permanent closure will affect 131 employees at the Oklahoma facility, about 85 employees will be affected by the machine shutdown at the Winconsin facility. Clearwater intends to assist the retrenched employees in vocational training and other educational benefits to enable them to get employed as early as possible. The company expects the restructuring actions to save $7–$9 million in 2017.
Clearwater manufactures diversified paper and related products including, consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp. The company sells these products to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. The company also manufactures bleached paperboard used by quality-conscious printers and packaging converters.
Some better-ranked stocks in the industry include Fibria Celulose S.A. , Gerdau S.A. (GGB - Free Report) and Israel Chemicals Ltd. (ICL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fibria Celulose has beaten estimates thrice in the trailing four quarters for an average earnings surprise of 24.6%.
Gerdau has a forward P/E (F1) of 85.6x.
Israel Chemicals has long-term earnings growth expectation of 1.6% and has beaten estimates twice in the trailing four quarters for an average positive earnings surprise of 15.3%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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