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Clearwater Paper (CLW) Q4 Earnings & Revenues Beat Estimates
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Clearwater Paper Corporation (CLW - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 82 cents per share, which beat the Zacks Consensus Estimate of 60 cents. However, the bottom line declined 43% from $1.45 in the prior-year quarter. Gains from strong paperboard volumes, continued focus on operating efficiencies, and higher pricing were offset by significant cost inflation in both segments.
Including one-time items, the company reported earnings of 56 cents per share compared with $1.34 share in the prior-year quarter.
The company generated revenues of $490 million in fourth-quarter 2021, reflecting year-over-year growth of 8%. The top line figure outpaced the Zacks Consensus Estimate of $460 million.
Clearwater Paper Corporation Price, Consensus and EPS Surprise
Cost of sales was $429 million, up 14% year over year. Gross profit declined 21% year over year to $61 million. Gross margin was 12.4% in the reported quarter, marking a 460 basis point contraction from 17% in the prior-year quarter.
Selling, general and administrative expenditure decreased 6% to $30.5 million from the year-ago quarter. Adjusted EBITDA was $55.6 million in the reported quarter, which declined 22% from the prior-year quarter. Adjusted EBITDA margin was 11.3% compared with 15.8% in the year-ago quarter.
Segment Performance
Consumer Products: Net sales declined 3% year over year to $232 million from the prior-year quarter. The segment reported adjusted EBITDA of $8 million, an 82% plunge from $44.7 reported in the last year’s comparable quarter attributable to lower sales volumes and higher input costs, mainly pulp and transportation.
Pulp and Paperboard: Net sales improved 19% year over year to $261 million. Adjusted EBITDA was $62 million in the reported quarter, up from $43 million in the prior-year quarter aided by increased pricing and sales volume that were somewhat offset by higher costs.
Financial Position
Clearwater Paper’s cash and cash equivalents were $25.2 million at the end of 2021 compared with $35.9 million at the end of 2020. Operating cash flow was $96.4 million in 2021, marking a significant decline from $248 million in the prior year. The company’s long-term debt was $637.6 million as of Dec 31, 2021, down from $716 million as of Dec 31, 2020.
2021 Results
Clearwater Paper’s adjusted earnings per share plunged 81% year-over-year to $1.03 in 2021. The bottom line, however, beat the Zacks Consensus Estimate of 78 cents. Including one-time items, the company delivered a loss per share of $1.67 in 2021 against earnings per share of $4.61 in 2020. Sales declined 5% year over year to $1.77 billion but beat the Zacks Consensus Estimate of $1.74 billion.
Outlook
Clearwater Paper expects strength in the paperboard markets to continue, with tissue demand normalizing. However, the company anticipates inflationary pressures and supply chain disruptions to persist.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Clearwater Paper’s share price has fallen 21.9% compared with the industry’s decline of 2.2%.
Zacks Rank & Stocks to Consider
Clearwater Paper currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 56.2% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised upward by 8.9% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%. ALB has rallied around 53.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 73.5%. NTR has rallied around 33.2% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 5.3% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.9%. ASIX has surged 51.6% over a year. The company carries a Zacks Rank #2 (Buy).
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Clearwater Paper (CLW) Q4 Earnings & Revenues Beat Estimates
Clearwater Paper Corporation (CLW - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 82 cents per share, which beat the Zacks Consensus Estimate of 60 cents. However, the bottom line declined 43% from $1.45 in the prior-year quarter. Gains from strong paperboard volumes, continued focus on operating efficiencies, and higher pricing were offset by significant cost inflation in both segments.
Including one-time items, the company reported earnings of 56 cents per share compared with $1.34 share in the prior-year quarter.
The company generated revenues of $490 million in fourth-quarter 2021, reflecting year-over-year growth of 8%. The top line figure outpaced the Zacks Consensus Estimate of $460 million.
Clearwater Paper Corporation Price, Consensus and EPS Surprise
Clearwater Paper Corporation price-consensus-eps-surprise-chart | Clearwater Paper Corporation Quote
Cost of sales was $429 million, up 14% year over year. Gross profit declined 21% year over year to $61 million. Gross margin was 12.4% in the reported quarter, marking a 460 basis point contraction from 17% in the prior-year quarter.
Selling, general and administrative expenditure decreased 6% to $30.5 million from the year-ago quarter. Adjusted EBITDA was $55.6 million in the reported quarter, which declined 22% from the prior-year quarter. Adjusted EBITDA margin was 11.3% compared with 15.8% in the year-ago quarter.
Segment Performance
Consumer Products: Net sales declined 3% year over year to $232 million from the prior-year quarter. The segment reported adjusted EBITDA of $8 million, an 82% plunge from $44.7 reported in the last year’s comparable quarter attributable to lower sales volumes and higher input costs, mainly pulp and transportation.
Pulp and Paperboard: Net sales improved 19% year over year to $261 million. Adjusted EBITDA was $62 million in the reported quarter, up from $43 million in the prior-year quarter aided by increased pricing and sales volume that were somewhat offset by higher costs.
Financial Position
Clearwater Paper’s cash and cash equivalents were $25.2 million at the end of 2021 compared with $35.9 million at the end of 2020. Operating cash flow was $96.4 million in 2021, marking a significant decline from $248 million in the prior year. The company’s long-term debt was $637.6 million as of Dec 31, 2021, down from $716 million as of Dec 31, 2020.
2021 Results
Clearwater Paper’s adjusted earnings per share plunged 81% year-over-year to $1.03 in 2021. The bottom line, however, beat the Zacks Consensus Estimate of 78 cents. Including one-time items, the company delivered a loss per share of $1.67 in 2021 against earnings per share of $4.61 in 2020. Sales declined 5% year over year to $1.77 billion but beat the Zacks Consensus Estimate of $1.74 billion.
Outlook
Clearwater Paper expects strength in the paperboard markets to continue, with tissue demand normalizing. However, the company anticipates inflationary pressures and supply chain disruptions to persist.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Clearwater Paper’s share price has fallen 21.9% compared with the industry’s decline of 2.2%.
Zacks Rank & Stocks to Consider
Clearwater Paper currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 56.2% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised upward by 8.9% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%. ALB has rallied around 53.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 73.5%. NTR has rallied around 33.2% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 5.3% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.9%. ASIX has surged 51.6% over a year. The company carries a Zacks Rank #2 (Buy).