Clearwater Paper (NYSE:CLW) Releases Quarterly Earnings Results, Misses Expectations By $0.26 EPS

Clearwater Paper (NYSE:CLW) released its earnings results on Tuesday. The basic materials company reported ($1.75) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.49) by ($0.26), Zacks reports. Clearwater Paper had a negative net margin of 1.63% and a negative return on equity of 3.94%. The company had revenue of $374.80 million during the quarter, compared to analysts’ expectations of $374.80 million.

Here are the key takeaways from Clearwater Paper’s conference call:

• Second-quarter profitability remained weak: Clearwater Paper reported a $21 million net loss and negative $8 million of adjusted EBITDA, as an 8% shipment increase was more than offset by a 9% decline in market pricing and higher outage, transportation, and chemical costs.
• SBS industry conditions are improving. The company cited 6% year-to-date industry shipment growth, an 11% decline in imports, reduced industry production, and operating rates expected to exceed 90% by year-end.
• Two planned $60-per-ton price increases are expected to begin benefiting results in the second half of 2026; the first increase and related index changes are expected to provide a $50 million-$60 million annualized EBITDA benefit, with a larger impact expected in 2027.
• The Iran conflict is expected to raise chemical and transportation costs by an additional $3 million-$5 million in the third quarter and negatively affect full-year results by approximately $20 million-$25 million.
• Cost reductions and balance-sheet actions continue: the Cypress Bend restructuring is expected to save $8 million-$12 million annually, net debt fell $59 million in the quarter, and management expects positive free cash flow for 2026 while pursuing refinancing ahead of facility maturities.

Clearwater Paper Stock Performance

Shares of CLW stock traded up $3.74 during mid-day trading on Wednesday, hitting $21.25. 178,314 shares of the stock were exchanged, compared to its average volume of 210,478. The stock’s fifty day simple moving average is $16.04 and its two-hundred day simple moving average is $15.73. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.26 and a current ratio of 2.61. Clearwater Paper has a 12-month low of $11.73 and a 12-month high of $28.51. The stock has a market capitalization of $342.50 million, a price-to-earnings ratio of -13.79 and a beta of 0.27.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Truist Financial increased their price target on Clearwater Paper from $12.00 to $17.00 and gave the company a “hold” rating in a research report on Wednesday, July 15th. TD downgraded shares of Clearwater Paper from a “buy” rating to a “hold” rating and decreased their price target for the stock from $19.00 to $17.00 in a research note on Wednesday, April 29th. Bank of America assumed coverage on shares of Clearwater Paper in a report on Thursday, July 2nd. They set a “buy” rating and a $19.00 price target for the company. Royal Bank Of Canada reduced their price objective on shares of Clearwater Paper from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Clearwater Paper in a research note on Friday, May 8th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $18.17.

Institutional Trading of Clearwater Paper

A number of large investors have recently made changes to their positions in CLW. Meeder Asset Management Inc. acquired a new position in Clearwater Paper during the fourth quarter worth approximately $47,000. Tower Research Capital LLC TRC boosted its holdings in shares of Clearwater Paper by 34.7% in the second quarter. Tower Research Capital LLC TRC now owns 2,185 shares of the basic materials company’s stock valued at $60,000 after acquiring an additional 563 shares during the period. BNP Paribas Financial Markets grew its position in shares of Clearwater Paper by 608.8% during the second quarter. BNP Paribas Financial Markets now owns 6,585 shares of the basic materials company’s stock worth $179,000 after acquiring an additional 5,656 shares during the last quarter. Caxton Associates LLP purchased a new position in shares of Clearwater Paper during the first quarter worth approximately $204,000. Finally, Deutsche Bank AG increased its holdings in shares of Clearwater Paper by 7.0% in the 4th quarter. Deutsche Bank AG now owns 12,319 shares of the basic materials company’s stock valued at $214,000 after acquiring an additional 802 shares during the period. 89.98% of the stock is owned by institutional investors and hedge funds.

Clearwater Paper Company Profile

Clearwater Paper Corporation is an independent manufacturer of premium tissue and pulp and paperboard products for private-label and commercial customers in North America. The company operates through two core segments: Consumer Products, which produces bathroom tissue, paper towels and other away-from-home tissue products under private-label contracts; and Pulp & Paperboard, which supplies bleached paperboard used in folding cartons, foodservice packaging and specialty paper applications.

The Consumer Products segment services retail grocers, warehouse clubs, online merchants and janitorial distributors, leveraging multiple converting facilities to produce roll and folded tissue items for both household and institutional use.