Clearwater Paper (NYSE:CLW) Issues Earnings Results, Beats Expectations By $0.03 EPS

Clearwater Paper (NYSE:CLW) issued its earnings results on Tuesday. The basic materials company reported ($1.29) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.32) by $0.03, FiscalAI reports. The company had revenue of $360.30 million for the quarter, compared to analysts’ expectations of $365.15 million. Clearwater Paper had a negative net margin of 1.20% and a negative return on equity of 2.11%.

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

• First-quarter results showed a net loss of $13 million and adjusted EBITDA of $2 million (just above guidance), with shipments +5% but net sales down 5% and an estimated $15 million weather-related EBITDA hit at two mills.
• Management restructured the Cypress Bend mill (about a 20% reduction in rolls) and expects $8 million–$12 million of annual cost savings while running the mill at reduced rates to better align supply with demand.
• The company has received over $40 million of representation & warranty insurance proceeds (including $17.5 million in Q1) and expects a tax refund of roughly $27 million–$28 million (about $23 million remaining), which management cites as part of a plan to achieve break‑even or better free cash flow for the year.
• Near-term margin pressure remains significant — management expects $3 million–$5 million of quarterly headwinds from the Middle East conflict (chemicals, diesel, wood) and Q2 adjusted EBITDA is guided to break‑even to −$10 million due to a $22 million–$24 million Lewiston maintenance outage.
• Strategic product and pricing moves include launching lightweight Velora paperboard to compete with FBB and implementing a $60/ton price increase on extruded products (70,000 tons not index‑tied), though broader price recovery on other grades has been challenging given current industry oversupply.

Clearwater Paper Stock Up 3.7%

NYSE CLW traded up $0.48 on Thursday, hitting $13.37. The stock had a trading volume of 253,826 shares, compared to its average volume of 221,235. The business’s fifty day moving average price is $14.40 and its 200 day moving average price is $16.89. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.43 and a quick ratio of 1.13. Clearwater Paper has a 52-week low of $11.73 and a 52-week high of $30.96. The stock has a market cap of $214.37 million, a price-to-earnings ratio of -12.07 and a beta of 0.22.

Analysts Set New Price Targets

Several brokerages have recently weighed in on CLW. TD Cowen cut shares of Clearwater Paper from a “buy” rating to a “hold” rating and set a $17.00 price target for the company. in a research report on Wednesday. Royal Bank Of Canada cut 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. TD Securities downgraded shares of Clearwater Paper from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. TD lowered Clearwater Paper from a “buy” rating to a “hold” rating and lowered their target price for the stock from $19.00 to $17.00 in a report on Wednesday. Finally, Truist Financial reaffirmed a “hold” rating and set a $12.00 target price (down from $15.00) on shares of Clearwater Paper in a research report on Wednesday. One analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Clearwater Paper presently has a consensus rating of “Hold” and a consensus target price of $17.00.

Institutional Trading of Clearwater Paper

Hedge funds and other institutional investors have recently made changes to their positions in the business. Comerica Bank grew its stake in Clearwater Paper by 26.5% during the 3rd quarter. Comerica Bank now owns 28,419 shares of the basic materials company’s stock worth $590,000 after buying an additional 5,952 shares during the last quarter. Balyasny Asset Management L.P. purchased a new stake in Clearwater Paper in the second quarter valued at about $512,000. Susquehanna Portfolio Strategies LLC raised its stake in Clearwater Paper by 185.4% in the fourth quarter. Susquehanna Portfolio Strategies LLC now owns 28,162 shares of the basic materials company’s stock valued at $490,000 after buying an additional 18,293 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Clearwater Paper by 22.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 26,446 shares of the basic materials company’s stock worth $461,000 after acquiring an additional 4,812 shares in the last quarter. Finally, HRT Financial LP acquired a new stake in Clearwater Paper in the fourth quarter worth about $458,000. Hedge funds and other institutional investors own 89.98% of the company’s stock.

Clearwater Paper News Roundup

Here are the key news stories impacting Clearwater Paper this week:

• Positive Sentiment: Q1 EPS slightly beat estimates: reported ($1.29) vs. consensus ($1.32), a modest upside that can limit downside pressure after the print. MarketBeat Q1 results
• Positive Sentiment: Volume recovery: company reported volume up ~5% year-over-year, suggesting operational improvement even as market pricing remained weak — a key part of the bullish case (utilization-driven recovery). BusinessWire Q1 release
• Neutral Sentiment: Earnings call and transcripts available — read for management commentary on pricing, costs, and recovery timing; these details will influence near-term investor sentiment. Fool transcript Yahoo highlights
• Negative Sentiment: TD Securities downgraded CLW from “strong-buy”/”buy” to “hold” and cut its price target to $17 (from $19), signaling lower analyst confidence and reducing upside expectations. BayStreet TD downgrade Zacks note
• Negative Sentiment: Truist reaffirmed a “hold” rating and trimmed its price target to $12 (from $15), implying downside versus current trading levels and adding downward pressure from institutional research. Benzinga Truist note
• Negative Sentiment: Guidance and revenue: management trimmed FY revenue guidance (roughly $1.4B–$1.5B vs. consensus nearer $1.5B) and Q1 revenue missed estimates; company reported a larger net loss quarter-over-quarter — these are material headwinds to near-term valuation. BusinessWire guidance & results MarketBeat digest
• Negative Sentiment: Critical analysis highlights structural concerns — high leverage, shrinking EBITDA, and execution inconsistency are cited as reasons the recovery story may be fragile, which could keep sentiment muted until utilization and margins clearly improve. Seeking Alpha analysis

About Clearwater Paper

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.